Question 10 5 points Save Answer There is empirical evidence supports the view that primary securities markets do have high degree of efficiency. Which one of the followings is (are) consistent with this? 1. Stock market reaction to the news is usually quick IL Financial statement analysis is still useful for price discovery til, Historical data has no or less prediction power. IV. It is not difficult to find price patterns for generating abnormal returns Only and it Only I and I ll and in Only I and IV Only ill and IV Question 11 I. It covers risk II. It can be applied to all companies III. It controls for risk-return relations Which one of insights above is (are) reason(s) for using CAPM as a common approach to estimate the cost of equity. Only! O Only I and I O Only II and in oll and 111 Only