please ans all with detailed explanation thanks

1.Suppose the TRUE model of expected returns is the Fama French 3 factor model. For a particular security, you calculate a non-zero alpha using the CAPM index model. Which of the following must be true?

		You have encountered an omitted factor problem.
		You have discovered an arbitrage opportunity.
		A and B are both true.
		A and B are both not true.

2. As a Wall Street analyst, you have been closely following the latest quarterly earnings announcement of YYDS Company. Your findings are as follows:

	Day 1	Day 2	Day 3
Stock Returns	2.4%	9.9%	1.6%
Market Returns	7.2%	4.4%	4.1%

2. Assume that the stock has a market beta of 1.3, and that the risk-free rate is 1.6%. Using CAPM, what is the cumulative abnormal return (CAR) for YYDS Company over the three-day period?

		19.0%
		-1.8%
		-5.1%
		-6.5%
		None of the above

3. In Ainis research of the stock market, she observes that stock prices seem to exhibit random movements. What conclusion can she draw from this data?

		The markets are irrational.
		The markets are functioning efficiently.
		Stock prices cannot be the same as fundamental values.
		Technical analysis is useful for uncovering trends in stock prices -1.8%

4.

post Earnings Announcement Drift (PEAD) is NOT a violation of which form(s) of the Efficient Market Hypothesis?

		Weak form only
		Semi-strong form
		Strong form
		It violates all three forms