1) Value stocks have______ than growth stocks

a) more market risk

b) lower expected returns

c)less market risk

d) higher expected returns

2) The CAPM cannot explain the post-earnings drift. This evidence indicates that

a) The stock market is inefficient and CAPM is wrong

b) The stock market is inefficient or CAPM is wrong

c) The stock market is inefficient

d) CAPM is wrong

3) The post-earnings drift is inconsistent with I The weak form efficient market hypothesis II The semi-strong form efficient market hypothesis III The strong form efficient market hypothesis

None of I, II, and III

I, II, and III

I and II

I