Question Below:

1. An investor can only establish positive exposure to the risk of a given stock but not negative exposure. True False 2. The weak form of market efciency does not work well in the housing market because real estate is less liquid than stocks and houses are harder to trade. True False 3. Suppose there is arbitrage opportunity in the market, then all three forms of EMH are violated. True False 4. Assume that the yield curve is at, and coupons are paid annually. The duration of a treasury bond with 5% coupon rate increases when interest rate drops. True False 5. The variance of a large portfolio is predominantly determined by the average covariance between the constituent stocks. True False