State whether they are T/F/or U and provide justification of your argument.

1. When a stock is announced to be included in the Hang Seng Index in the Hong Kong stock market, I can make profits by trading the stock.

2. In a CAPM world, an asset with positive beta must have expected returns higher than the risk-free rate. Thus, if I see a stock that is in the Hong Kong stock exchange compared to the overall Hong Kong stock market index return, I can conclude that the asset has positive beta.

3. If I submit a limit order to the limit order book, the bid-ask spread cannot be increased.