Question: Problem # 2 How does the disposition effect impact investor tax? Problem # 3 If you can use past returns to build an investment strategy

Problem # 2 How does the disposition effect impact investor tax?

Problem # 3 If you can use past returns to build an investment strategy that creates value (with positive alpha), the market portfolio is not efficient. Explain why.

Problem # 4 What is the riskiest position: a short position on a call or a short position on a put? If we take the worst case scenario, what will be the losses for investors in each case?

Problem # 6 You own Costo shares. You fear a drop in their price and therefore want to protect your wallet. How to do ?

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