1. Assume that a company announces unexpectedly high earnings in a particular quarter. In an efficient market one might expect:

1. an abnormal price change immediately after the announcement
2. an abnormal price increase before the announcement
3. an abnormal price decrease after the announcement
4. an abnormal price change before or after the announcement

2. Carhart model adds _________ factor to the fama-french model.

1. Underreaction
2. Value
3. Size
4. Momentum
5. Interest