1. Which of the following statements is correct?

Excess volatility cannot occur if prices...

a. shows short run momentum b. do not show long run reversal c. none of the answers is correct d. follow a random walk

2. Which of the following statements is correct?

Which of the following statements is correct?

a. the closed end fund puzzle b. the equity premium puzzle c. none of the answers is correct d. momentum of stock prices

3. Which of the following statements is correct?

Ambiguity ll: a. none of the answers is correct b. an investor cannot show ambiguity aversion and ambiguity loving behavior depending on the decision problem c. the equity premium puzzle cannot be explained without using ambiguity d. ambiguity aversion and loss aversion describe the same behavioral pattern

4. Which of the following statements is correct?

The disposition effect...

a. violates the no arbitrage condition b. violates the random walk hypothesis c. describes that the decision of an investor to sell a stock does not depend on the past price movement d. none of the answers is correct

5. Which of the following statements is correct?

Which of the following effects can occur together?

a. the equity premium puzzle and short run momentum b. the random walk and long run reversal c.none of the answers is correct d. short run momentum and random walk

6. Which of the following statements is correct?

Long run reversal ...

a. cannot be explained b. can explain if investors do not maximize their wealth c. none of the answers is correct d. cannot help to explain the disposition effect