1. According to CAPM, the expected return of a stock should be determined by:
2. If trading is modeled as a short-term game played with 2 players plus transactions cost paid to brokerage and exchange, which statement is correct from the perspective of the 2 players?
3. Which of the following true statements is the main reason why you should NOT draw conclusions about how good a trader is based on their short-term results? they are doing OK.
4. Your current investment portfolio is the value-weighted US market. If you figure out that a certain stock has a positive expected alpha, you should: