53. (1 point) When the local economic conditions worsen, local stock prices in the future

typically:

(a) Decrease.

(b) Increase.

(c) Cannot be predicted.

(d) None of the above.

54. (1 point) In regions with a strong local bias, local return predictability is:

(a) Stronger.

(b) Weaker.

(c) Unaffected.

(d) None of the above.

55. (1 point) If geographically diffused information aggregate slowly because analysts do

not incorporate them in their forecasts, asset prices are likely to be:

(a) Predictable.

(b) Unpredictable.

(c) Random.

(d) None of the above