Which of the following regarding the investment premium is FALSE? A. Firms that increase capital investment more achieve lower returns than firms that invest less. B. Fama and French's CMA (conservative minus aggressive) risk factor captures the investment premium. C. Firms that increase capital investment more achieve higher returns than firms that invest less. D. Investors underreact to empire building implications of increased investments. QUESTION 6 Which of the following statements regarding overreaction is FALSE? B. After making the standard risk adjustments, the differences in the future returns between the stocks with extremely poor returns over the previous the years and the stocks with extremely high returns disappear. C. A high dividend yield tend to predict a high subsequent return. D. After observing a sequence of good news, investors overestimate the chance of a good news next time