Question: 1 )Arbitrageurs may be unable to exploit mispricing due to ____________. I) fundamental risk II) implementation costs III) noise trader risk IV) framing V) mental

1 )Arbitrageurs may be unable to exploit mispricing due to ____________. I) fundamental risk II) implementation costs III) noise trader risk IV) framing V) mental accounting

a. I, II, III, and V

b. I and II only

c. II, III, and IV

d. I, II, and III

e. IV and V

2) The empirical research found that, on average, the risk-adjusted returns of small firms

a. were higher than the risk-adjusted returns of large firms.

b. were negative.

c. were lower than the risk-adjusted returns of large firms.

d. were unrelated to the risk-adjusted returns of large firms.

3 )If securities returns are serially correlated then: a. the stock market is strong form efficient

b. the stock market is weak form efficient

c. the stock market is weak form inefficient

d. the stock market is semi-strong form efficient

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