Which two of the following five statements are correct?

Select two alternatives:

• The market portfolio has a positive alpha.

• If investors believe that others have superior information which they can take advantage of by copying their trades, this can lead to an informational cascade effect.

• The size effect is the observation that small stocks have positive alphas.

• When the market portfolio is efficient, many stocks will have positive alphas and will lie above the security market line.

• In general, a self-financing portfolio is any portfolio with portfolio weights that sum to one rather than zero.