1. Which of the following about the size and value strategies are correct?

   1. Size and value effects are against market efficiency in the CAPM world.

   2. Size effect is not against market efficiency in the CAPM world because small firms have higher market beta than large firms.

   3. The size effect is against market efficiency in the CAPM world because small firms' market betas are only slightly higher than large firms' but their returns are much higher than large firms'.

   4 The value effect is against market efficiency in the CAPM world because growth and value stocks have similar market betas.

   5 Value stocks have much higher market beta than growth stocks. So the value effect is not against market efficiency in the CAPM world.

   		2 and 5
   		1 and 3
   		1 and 4
   		1, 3, and 4