The historical correlation between the excess returns of Firm Y and the excess returns of the market is 0.64. How much of the historical excess returns of Firm Y is not explained by the market?

Select one alternative:

• 59%
• 41%
• 80%
• 20%
• 64%

In order to show that markets are efficient (or not) we require

Select one alternative:

• More funding for finance academics
• Another 50 years of stock return data
• A lot more computing power
• A model of what an efficient market would look like
• All of these alternatives