1. Which of the following statements regarding the use of an active investment strategy in common stock valuation is(are) correct?

1. Pursuit of an active investment strategy assumes that investors possess some advantage relative to other market participants, such as superior analytical skills.
2. Active investment strategies include buy-and-hold and using index funds.

1. I only
2. II only
3. Both I and II
4. Neither I nor II

2. Which of the following statements regarding money market securities is(are) correct?
   1. Money markets include short-term, highly liquid, relatively low-risk debt instruments sold by governments, financial institutions, and corporations to investors.
   2. Investors may invest directly in money market securities.
   3. Treasury bills are an example of a money market security and are used as a benchmark asset because of their risk-free nature.
   4. All of these.