26. The size effect refers to the observation that: A. returns on shares traded exclusively on small markets are below average B. returns on shares traded exclusively on large markets are above average C. returns on shares of smaller companies are smaller than those of le companies. D. returns on shares of smaller companies are larger than those of 1 companies, 27. In an efficient market, a simple buy-and-hold policy is: A. the best strategy because trying to beat the market is almost impossible. B. the best strategy because evidence suggests that even private inform cannot yield abnormal returns. C. not the best strategy because, as share prices change over time, port warrant re-balancing. D. not the best strategy because, in an efficient market, some investors believe that the market is inefficient. 28. A company with a low book-to-market ratio is: A. a company that has had good years in the past but that the market now to have poor prospects. B. a company that the market judges to have good prospects. C. a company that the market judges to have poor prospects. D. both a company that has had good years in the past but that the mark judges to have poor prospects, and a company that the market judges : poor prospects. 29. An investor discovers that for a certain group of shares, large positive price are always followed by large negative price changes. This finding is a violatior A. semi-strong form of the EMH. B. the moderate form of the EMH. C. the strong form of the EMH. D. the weak form of the EMH. 30. Which of the following is not a type of short-term asset held by businesses? A. Inventory B. Plant, property and equipment C. Liquid assets D. Accounts receivable