1. The portfolio turnover ratio is the best measure of the tax efficiency of an active portfolio.

Is this statement true or false? Explain your answer.

2. Suppose we look at the S&P 500 Index for today. Suppose we make a list of the 12 best-ranking earnings momentum stocks (in the S&P 500 Index). Suppose we make another list containing the 12 best ranking earnings momentum stocks (in the S&P 500 Index). We are likely to have the same stocks in our two lists.

Is this statement true or false? Explain your answer.