18. According to our discussion of empirical findings in stock markets, which of the following statements is (are) correct? (I) Poorly-performing stocks tend to have positive abnormal performance over short horizons. (II) Portfolios of low P/E stocks exhibit higher risk-adjusted returns. (III) Larger firms tend to have higher stock returns than smaller firms. (IV) Firms with high book/market ratios usually generate higher returns than firms with low book/market ratios. (V) Stock prices of firms with positive earnings surprise tend to rise. (a) IV and V only (b) II and IV only (c) II and V only (d) II, IV, and V only (e) I, II, IV, and V only 19. The internal rate of return method of analysis: (a) usually leads to incorrect decisions when cash flows are conventional. (b) may lead to incorrect decisions when comparing mutually exclusive projects. (c) is rarely used in the business world today. (d) is the preferred method of analysis when projects are either mutually exclusive or have unconventional cash flows. (e) is dependent upon prespecified rates used to discount the cash flows