Understand and be able to explain the efficient markets hypothesis (EMH) and weak, semi-strong, and strong form efficiency and the tests that examine whether these are true. Understand and be able to explain the Fama-French Three-Factor Model. Understand the Behavioral Finance terms anchoring bias, herding behavior and loss aversion. Identify concerns about beta and the CAPM. Understand and be able to explain the Arbitrage Pricing Theory (APT). In particular, understand how it is different from the SML and CAPM. Focus on the assigned questions and problems 1-14 in Chapter 6, and 1-4 in Ch. 25. Understand the answers to problems 25-5 and 25-6, as well as the MiniCase