• If behavioral finance holds, this implies
• A. all investors are irrational some of the time.
• B. all investors are irrational all the time.
• C. some investors are irrational some of the time.
• D. some investors are irrational all of the time.
• E. all investors are rational all of the time.

The efficient market hypothesis says that, on average, professional investors will

• A. tend to earn below average rates of returns.
• B. earn a normal rate of return.
• C. outperform investors with inside information.
• D. tend to outperform most market participants.
• E. earn the same rate of return over time regardless of the risk assumed.