8) If you believe in strong form market efficiency, which of the following sentences is not true:

A )Insiders can earn abnormal returns

B) anuary Effect does not exist.

C) Value Investing is useless in earning abnormal returns

D)Market timing is useless in earning abnormal returns

9)A $1,000 face value bond has a 8 percent coupon and pays interest semiannually. The bond matures in 3 years and has a yield to maturity of 6.8 percent. What is the Macaulay duration?

A ) 1.8 yrs

B) 2.73 yrs

C) 2.45 yrs

D) 1.9yrs

27) Alma's last stock price is $35. The stock has a volatility of 35%. The risk free rate is 3.5%. There are call and put options with six months maturity and with $30 exercise price. Assume the company does not pay dividend.

What is the call option premium?

A) $1.73 B) $2.38 C) $4.53

D) $6.66