Question 41 1 pts If the financial markets are efficient, then investors should expect their investments in those markets to: O produce negative returns on a routine basis. generally have zero net present values. O produce arbitrage opportunities on a routine basis. generally have positive net present values. earn extraordinary returns on a routine basis. D Question 42 1 pts Financial markets fluctuate daily because they: only reflect historical information. offer tremendous arbitrage opportunities. are continually reacting to new information are inefficient. are slowly reacting to new information Question 43 1 pts According to theory, studying historical prices in order to identify mispriced stocks will: work only in a strong form efficient market. only work if the market is at least weak form efficient. work as long as the market is less than strong form efficient. not work if the market is at least weak form efficient. not work in any market regardless of the level of efficiency. U Question 44 1 pts Which one of these is an example of financially irrational behavior? A firm issuing new shares when their managers feel the stock is overpriced An investor selling stock to realize a profit Buying a mutual fund to benefit from diversification Increasing the amount you are willing to pay for a stock following a positive announcement Casino gambling