1) Given the Security Market Line (SML): E(Ri) = 0.05 + 0.04 i, which of the below asset(s) is(are) underpriced?

- Asset A has a beta of 1.3 and an estimated return of 9.9%.

- Asset B has a beta of 0.9 and an estimated return of 8.8%.

- Asset C has a beta of 0.8 and an estimated return of 8.2%.

Select one:

a. Asset C

b. Assets A and C

c. Assets B and C

d. Asset B

2. In semi-strong form of market efficiency, the information set covers .....................

Select one:

a. the distinction is not based on information set

b. all publicly available informaton

c. all pertinent (public and private) information

d. past price movements