1.) Look up the news about Bill Ackman, the manager of the hedge fund Pershing Squares, and his wrong bet on Valeant Pharmaceuticals, Inc (VRX) in the time period 2014-2017. In a paragraph, explain what happened in that time span to Ackman and Valeant and relate the events to the concepts learned in class.

2.) Explain why arbitrageurs may have failed to prevent the bubble as it evolved.

3.)Go to finance.yahoo.com and look up monthly historical prices of the Nasdaq Composite index (^IXIC). Use the Chart tool to plot the prices over the period 1998-2002. a.)For approximately how long the bubble evolved until it reached the peak? b.)Use the Comparison tool to overlap the S&P500 Index (^GSPC) over the same period.