41. (1 point) The behavioral finance division at JP Morgan believed that systematic investor irrationality generates anomalies that:

(a) Can potentially be exploited.

(b) Cannot be exploited.

(c) Do not affect asset prices.

(d) Cannot be detected.

42. (1 point) The 130/30 low volatility trading strategy refers to:

(a) Short high volatility firms and long low volatility firms.

(b) Long high volatility firms and short low volatility firms.

(c) Borrow money at the riskfree rate and hold a long position in high volatility firms.

(d) None of the above.

43. (1 point) A low volatility trading strategy generates:

(a) Higher return and lower volatility than the market.

(b) Higher return and higher volatility than the market.

(c) Lower return and lower volatility than the market.

(d) Lower return and higher volatility than the market.