2. Most professional investment managers do not accept the Efficient Market Hypothesis for what reason(s)? a. Most of them consistently outperform market average returns b. The restrictive nature of the EMH assumptions do not reflect actual financial market conditions. c. If the strong form of EMH were true, index funds would dominate and there would be no rationale for active investment management. d. EMH has been disproven. e. b&c 3. Which of the following is true about common stock compared to debt from the corporation's perspective? Less expensive than debt. Offers greater financial flexibility to the company than does debt. Creates a cash flow burden to the company if revenue declines. d. Requires regular dividends as a legal obligation 4. The equation ParrrF+ B* MRP results from? a. CAPM. b. APT . d. The latest findings from behavioral finance. Which investor behavior does not reflect a decision making bias proposed by behavioral finance investigators? a. Recency bias. b. Loss aversion c. Regret bias (fear of missing out. d. Strict adherence to risk/return discipline