Why do researchers examine abnormal returns?

Question 10 options:

	Abnormal returns show how different returns are compared to their historical average
	Abnormal returns adjust for risk
	Abnormal returns are always greater or equal to zero, whereas regular returns may be negative.
	Researchers do not examine abnormal returns; they look at regular returns.

Mark has invested money in two stocks, A and B. Stock A has declined 10% in value year to date, but Mark believes that there's a chance it could recover. Stock B has appreciated 8% this year, and there's a small chance that these gains might disappear. Mark wants to keep stock A and sell stock B. What is his behaviour most consistent with?

Question 9 options:

	Being risk averse over losses
	Being risk seeking over losses
	Exhibiting overconfidence
	Exhibiting time inconsistent preferences

A portfolio has the following returns over three months: 5%, -1%, 12%. What is the 3-month CAGR?

Question 8 options:

	16.42%
	16.00%
	5.33%
	5.47%