H B C Highest possible return, given Portfolio SD -12%: Answer each question (true or false) and give a one sentence explanation for your answer. 7 The efficient market hypothesis (any form of it) ignores a fundamental human condition: people can be irrational. True or False Explanation: EMH believes that there are enough rational Investors that cancel irrational ones, in wh FALSE B There is evidence in scholarly articles (using large samples) that high momentum stocks subsequently earn positive abnormal returns True or False: Explanation: 9 The semi-strong version of the EMH asserts that there is no value in corporate mergers motivated by the desire to produce a more de True or False: Explanation 10 Analysis by secur ts and investors helps keep markets efficient True or False: Explanation 11 The fact that a few fund managers have made a bundle of money in the stock market is proof that that market is not efficient. True or False Explanation: FALSE H B C Highest possible return, given Portfolio SD -12%: Answer each question (true or false) and give a one sentence explanation for your answer. 7 The efficient market hypothesis (any form of it) ignores a fundamental human condition: people can be irrational. True or False Explanation: EMH believes that there are enough rational Investors that cancel irrational ones, in wh FALSE B There is evidence in scholarly articles (using large samples) that high momentum stocks subsequently earn positive abnormal returns True or False: Explanation: 9 The semi-strong version of the EMH asserts that there is no value in corporate mergers motivated by the desire to produce a more de True or False: Explanation 10 Analysis by secur ts and investors helps keep markets efficient True or False: Explanation 11 The fact that a few fund managers have made a bundle of money in the stock market is proof that that market is not efficient. True or False Explanation: FALSE