1. Mixwell Smert is an individual investor who fervently believes that the market is efficient. Given his beliefs, identify whether Mixwell believes that each of the following statements is either true, false, or uncertain. Briefly explain your reasoning.

1. Because of its market dominance and its phenomenal growth trajectory, Amazon.com is a better investment today (Nov/Dec 2020) than is Kohls.

2. Accomplished individual investors can use experience, intuition, and valuation ratios to distinguish between stocks that are overpriced and underpriced today.

3. Margin trading can be an appropriate investment strategy for aggressive individual individuals with long-investment horizons and diversified portfolios.

4. Short selling (individual stocks) can be an appropriate strategy for aggressive investors with long-term horizons and diversified portfolios.

5. Although both strategies are risky (and are likely too risky for individual investors like Mixwell), purchasing call options on the S&P 500 is likely to produce positive returns over time (on average), whereas writing call options is likely to produce loses over time (on average).