Behavioral finance argues that

Select one:

a. even if security prices are wrong, it may be difficult to exploit them.

b. the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.

c. investors are rational.

d. even if security prices are wrong, it is still possible to exploit them and the failure to uncover successful trading rules or traders can be taken as proof of market efficiency.

e. all of the options are correct.

Consider an investment opportunity set formed with two securities with correlation of 0 (no correlation). The global-minimum variance portfolio has a standard deviation that is

Select one:

a. between the standard deviations of the two securities.

b. equal to the weighted sum of the securities' standard deviations and covariance.

c. smaller than the standard deviation of any of the two securities.

d. equal to the weighted sum of the two securities' standard deviations.

e. None of the options are correct.