7. Which of the following variables do Fama and French claim to do a good job in explaining stock retun? I. Book-to-market ratio II. Unexpected change in industrial production III. Firm size IV Momentum a) I only b) I and II only c) I and III only d) I, II, and III e) None of the above 8. According to the capital asset pricing model, a fairly priced security will plot a) above the security market line b) below the security market line c) all of the above d) None of the above 9. "If a market is not weak-form efficient, technical analysis may work and create value for investors." The statement above is a) true b) false firms are value firms and low book-to-market firms are growth firms