6. If the market is weak form o. A. semistrong form efficiency B. strong form efficiency must hold. semistrong form efficiency may hold. markets are not weak form efficient must hold. E. It should workout more. 7. The unexpect Use A. systematic risk and idiosyncratic isk. return on a security. U, is made up of B. market risk and systematic risk. C. idiosyncratic risk and unsystematic risk D. expected return and idiosyncratic risk. E. expected return and market risk. 8. Th and its beta coefficient is the: e linear relation between an asset's expected return A- reward-to-risk ratio. B. portfolio weight. C. portfolio risk. D. security market line. E. market risk premium 9. The beta of a security is calculated by: A. dividing th B. dividing C. dividi D. di E. None of the above. ing the correlation of the security with the market by the variance of the market. ing the variance of the market by the covariance of the security with the market. viding the variance of the market by the correlation of the security with the market. e covariance of the security with the market by the variance of the market. 10. The U.S. Securities and Exchange Commission periodically charges individuals with insider tradin and claims those individuals have made unfair profits. Based on this fact, you would tend to argue tha form efficient. A. perfect B. weak C. semistrong D. semiweak E. strong A. required return, expected return, and unbiased risk. B. average return, expected return, and unexpected return. C. required return, expected return, and unbiased return. D. risk, expected return, and unsystematic risk. E. actual total return, expected return, and unexpected return. 11. In the equation R-R-U, the three symbols stand for