1. The U.S. Government bond markets are considered to be extremely efficient.

   True

   False

2. The momentum anomaly tends to perform best in a bear market cycle and the early stage of a bull market cycle.

   True

   False

3. The value anomaly tends to perform best in a bear market cycle and the late stage of a bull market cycle.

   True

   False

4. In the usual underwriting process, which of the following apply to the investment bank involved in the deal? I. Provides its best effort to sell the securities, with the unsold portion going back to the issuer after the offering period expires. II. Buys the issue from the issuing firm at a certain price and then sells it in the primary market. III. Purchasing the issued securities in the secondary market when they are undervalued. IV. Buys the issue from the issuing firm at a certain price and then sells it in the secondary market. V. Provides research and legal advice only for the issuing firm.

   		III, IV, and V
   		V only
   		I, II, and V
   		I, II, and V