Which of the following are correct?

While there is no clear relationship between risk and return for individual stocks, on average smaller stocks have both higher risk and returns compared to larger stocks.

The difficulty to predict stock price movements in the short-run shows that stock markets in general can be considered as being inefficient.

The higher the return, the higher the risk, this holds both for individual stocks and diversified portfolios.

According to the research by Eugene Fama, Nobel Laureate in Economics, it is very difficult to predict stock price movements in the short run.

The 95% confidence interval for the expected return is defined as the Historical Average Return plus or minus three standard errors.

Which of the following are correct?

The matching principle indicates that the firm should finance permanent working capital with short-term sources of funds.

Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.

Regardless of the loan structure, the bank may include a compensating balance requirement in the loan agreement that reduces the usable loan proceeds.

Trade credit is a form of loan from a bank to the selling firm to compensate for outstanding receivables.

Firms should monitor accounts payable to make sure that they are making the payments at earliest possible time