Discuss whether each of following statements is true or false and WHY. a) The robust empirical...
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Discuss whether each of following statements is true or false and WHY. a) The robust empirical asset-pricing evidences show that the portfolio of the bottom 10% book-to-market ratio stocks outperforms the portfolio of the top 10% book-to-market ratio stocks in terms of the two portfolios' returns over five years. b) Asset managers can't make any money. Therefore, markets are efficient and price equals value. c) The Siamese Twin Companies of Royal Dutch and Shell is an example of risk-free arbitrage. Discuss whether each of following statements is true or false and WHY. a) The robust empirical asset-pricing evidences show that the portfolio of the bottom 10% book-to-market ratio stocks outperforms the portfolio of the top 10% book-to-market ratio stocks in terms of the two portfolios' returns over five years. b) Asset managers can't make any money. Therefore, markets are efficient and price equals value. c) The Siamese Twin Companies of Royal Dutch and Shell is an example of risk-free arbitrage.
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a The statement is true The empirical evidence does show that the portfolio of stocks with a low boo... View the full answer
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