5. Which of the following statements is correct? Excess volatility occurs... a. if prices in period t have a higher volatility than in period t-1 b. none of the answers is correct c. if prices change more than 40 times every day d. if prices have a lower volatility than the corresponding fundamental values 6. Which of the following statements is correct? Home Bias describes the observation.. a. that domestic stocks are underweighted in investors's portfolios b. that investors pay higher prices for domestic stocks c. that investors buy stocks at home d. none of the answers is correct.