Security Analysis Homework! Help needed

3. According to Greenblatt, for the magic formula portfolio, on average, last year's earnings will often provide a pretty good estimate for normal earnings going forward. A) True B) False 4. In order to show that stock price volatility is much greater than business value volatility, Greenblatt asks his students to compare the 52-week low stock price to the 52-week high stock price for big, well-known companies. A) True B) False 5. In his magic formula, Joel Greenblatt rebalances the stocks in the portfolio every three to five years. A) True B) False 6. Joel Greenblatt argues that the performance of magic formula investing is vastly superior to that of market averages. However, the performance is not as great on a riskadjusted basis. A) True B) False