Answer All Please

1. Suppose that each month, you decide to buy stocks that performed well during the previous 6 months, and hold them for 3 months. If this is a profitable trading strategy, this finding:

A) The market is not weak-form efficient but is semi-strong and strong form efficient

B) The market is not semi-strong efficient but is weak-form efficient

C) The market is not semi-strong or strong form efficient but is weak-form efficient

D) The market is not efficient at all

E) The market is efficient based on all levels

2. PayItForward Inc. announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2.5 percent annually. To purchase a share of this stock if you require a 12 percent rate of return. Using Gordons DDM, the current stock price is ________________ and g = ______________.

3. Stock A has an expected return of 2% and a standard deviation of 8%, while stock B has an expected return of 1% and a standard deviation of 5%. The correlation between Stock A and

Stock B is 0.10. You decided to invest $5,000 in Stock A and $20,000 in Stock B. What is the portfolios expected return?