For Problems 1, 2 and 3, answer whether or not the statement is True (T) or False (F), and provide a

brief explanation of why your answer is correct.

Problem 1. (T/F) Reversals and momentum show opposite return behavior. Thus, only one argument

may be true.

Problem 2. (T/F) During the tulip mania, normal (not too rich) people have hard time to buy tulip flowers

due to high prices.

Problem 3. (T/F) If the most recent transacted price is $100, you cannot put a limit buy order on the

limit order book above $100 since it will be immediately executed.