Question: 1. Explain why the below equity style factors generate positive excess return from the perspective of Efficient Market Hypothesis or Behavioral Finance or both. (1)

1. Explain why the below equity style factors generate positive excess return from the perspective of Efficient Market Hypothesis or Behavioral Finance or both.

(1) Value

(2) Momentum

(3) Short-term reversal

(4) Long-term reversal

2. Explain the difference between (1) fundamental equity quantitative strategy (solely betting on momentum factor) and (2) managed futures strategy in hedge fund industry.

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