5. Two studies by Basu (1977, 1983) found that firms with high P/E ratios A. earned higher average returns than firms with low P/E ratios B. earned the same average returns as firms with low P/E ratios C. earned lower average returns than firms with low P/E ratios D. had higher dividend yields than firms with low P/E ratios 6. Fundamental analysis is likely to yield best results for A. NYSE stocks B. neglected stocks c. Istocks that are frequently in the news D. fast-growing companies 7. Among the important characteristics of market efficiency is (are) that: 1. There are no arbitrage opportunities. 2. Security prices react quickly to new information. 3. Active trading strategies will not consistently outperform passive strategies. A. 1 only B. 2 only C. 1 and 3 only D. 1, 2, and 3