Question
1 )Arbitrageurs may be unable to exploit mispricing due to ____________. I) fundamental risk II) implementation costs III) noise trader risk IV) framing V) mental
1 )Arbitrageurs may be unable to exploit mispricing due to ____________. I) fundamental risk II) implementation costs III) noise trader risk IV) framing V) mental accounting
a. I, II, III, and V
b. I and II only
c. II, III, and IV
d. I, II, and III
e. IV and V
2) The empirical research found that, on average, the risk-adjusted returns of small firms
a. were higher than the risk-adjusted returns of large firms.
b. were negative.
c. were lower than the risk-adjusted returns of large firms.
d. were unrelated to the risk-adjusted returns of large firms.
3 )If securities returns are serially correlated then: a. the stock market is strong form efficient
b. the stock market is weak form efficient
c. the stock market is weak form inefficient
d. the stock market is semi-strong form efficient
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