1.If Company A has the same cash flows per share of stock with the same risk as Company B and their stocks are selling for $40 and $55, respectively, how should investors react? What would happen to their stock prices?

2.In theory, why is it easier to find mispricing in the stock prices of small firms than in the stocks of large firms?

3. If an investor believes that the market is semi strong efficient, are they more likely to employ active portfolio management or passive portfolio management?

4.Is the market considered to be strong-form efficient? Why or why not?

5. What is the accrued interest on a bond that has a coupon rate of 8%, a par value of $1,000, 182 days between payments, and 50 days since the last coupon payment? If the price of the bond today is $985, what is the clean price of the bond and what is the dirty price?