Average stock returns over long periods have been in what range in the U.S.

A) 5-8%

B) 9-13%

C) 17-22%

D) 35%-50%

Which assumes all investors would chose the same portfolio of risky assets?

A) Markowitz Portfolio Theory

B) Behavioral Finance

C) The Capital Asset Pricing Model (CAPM)

D) The Federal Reserve

A stock with an earnings report well above expectations is likely to:

A) rise sharply on the day of announcement and then provide returns expected for its level of risk

B) fall sharply on the day of announcement and then provide returns expected for its level of risk

C) rise sharply on the day of announcement and then outperform during the ensuing 90 days

D) show little reaction on the day of announcement but ouperform over the next five years

What day of the week has the lowest average returns?

A) Monday

B) Tuesday

C) Wednesday

D) Friday