20.. In an efficient market the correlation coefficient between stock returns for two non-overlapping time periods should be

A. Zero

B. negative and small

C. Positive and Large

D. Negative and Large '

E. Positive and Small

19.. The Food and Drug Administration (FDA) just announced yesterday that it approved a new drug by Johanson & Johanson Co. (J&J) that cures Covid- 19 .Immediately following the news, you observe that J&J's stock had an abnormal return of 0.0%.Which BEST describes this market's reaction to the new?

A. J&J's stock will likely rise in value tomorrow

B. The market did not care about finding a vaccine for curing COVID19

C. The market didnt react rationally to the news

D. The FDA's approval was already anticipated by the market

E. The market's return must have been zero

18.. In a semi-strong form efficient market, __________.

A. Security pr5ices react quickly to new information

B. All of these statements are true

C. Neither fundamental nor technical security analysis would enable investors to beat the market consistently.

D. Security prices do not reflect material non public information known only to insiders

E. Security prices are seldom far above or below their fair value levels

17.. One of Vampguard's actively-managed US stock funds outperformed the S&P every year for the past six years even after adjusting for the Fund's beta. The fund's management team uses fundamental analysis to identify under-priced stocks and avoid those that are over-priced.

Which of the following BEST describes the situation assuming markets are semi-strong form efficient?

A. Vampguards portfolio manager is skilled at identifying under priced stocks

B. Vampguard's fund performance proves conclusively that markets are weak from efficient rather than semi-strong efficient.

C. Vampguard's portfolio manager most likely believes that markets are weak form efficient

D. All statements are true

E. An investor believing that markets are strong form efficient would likely investment in the Vampguard's Fund since it delivered positive alpha over the past six years