Which of the following is NOT a piece of evidence for the investor underreaction? A. The stock market index excess returns are positively autocorrelated at the monthly frequency. B. Stocks with higher returns in the last six months tend to earn higher returns in the future. C. The stock market index excess returns are negatively autocorrelated at the three to five year horizons. D. Stocks with higher standardized unexpected earnings tend to earn higher returns in the future. QUESTION 2 Which of the following statements regarding the new era thinking is FALSE? A. Dows approach to the 1,000 milestone in 1960 s provided an anchor for people's expectations. B. Speculative bubbles and their associated new era thinking do not end definitively with a sudden, final crash. C. A low mortgage rate was also a factor for the housing market boom in California in 1970s. D. The new era theory emerged principally as an after-the-fact interpretation of a stock market boom. QUESTION 3 The inability to think through the elementary conclusions one would draw in the future if hypothetical events were to occur is a feature of which of the following A. Quantitative Anchors. B. Moral Anchors. C. Magical thinking. D. Nonconsequentialist reasoning