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Financial Economics class. Reference - Investments by Bodie, Kane and Marcus, 10th edition, but the use of the 9th or 11th edition. Question 1. Consider

Financial Economics class.

Reference - Investments by Bodie, Kane and Marcus, 10th edition, but the use of the 9th or 11th edition.

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Question 1. Consider the single index model. Suppose an asset has a negative beta and an alpha of zero. Would it ever make sense for an investor to hold such an asset? Explain in a sentence or two why or why not. Question 2. In the efficient markets hypothesis, what does it mean in general for a financial market to be "efficient"? Explain. What does this sense of efficiency mean for future asset prices

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