1. (3 points) Suppose there is only one systematic risk factor, and you have the following information on different assets.

1. Asset	Systematic variance	Firm-specific variance
   A	0.22	0.16
   B	0.25	0.14
   C	0.20	0.12

   Which one of the followings is NOT true?

2. Asset A has the largest beta
3. Asset B has the largest beta
4. Asset C has the least beta
5. Asset A has the largest firm-specific risk
6. Asset B has the largest total variance
7. Asset C has the least total variance

1. (2 points) Joe designed a trading strategy based on the announcements of unemployment rate. He earned abnormal returns using this strategy. Joes strategy is directly against the believes of the _____ of efficient market hypothesis (EMH).

1. Weak form
2. Semi-strong form
3. Strong form
4. Weak and semi-strong form
5. Semi-strong and strong form
6. Weak, semi-strong, and strong form (all three forms)