Question 16 :True or False?

If the market is weak-form efficient, investors CAN earn abnormal returns by trading on market information.

Group of answer choices

True

False

Question 17

According to the Halloween effect discussed in the lecture video ONLY, the period of Nov 1Apr 30 will offer you __________ return than the period of May 1Oct 31, and you should ________ stocks on/after Halloween day.

Group of answer choices

higher; sell

lower; buy

higher; buy

lower; sell

Question 18

Consider the following cash flows ($)

Year 0	-490
Year 1	300
Year 2	200
Year 3	100

Calculate the IRR (%).

Group of answer choices

7.8

13.2

10.4

11.8

6.6

9.1

Question 19

Mary's stock portfolio contains 10 stocks from different industries with equal weights. She now includes 10 more stocks from different industries in her portfolio. What kinds of risks in her portfolio will go DOWN:

I. total risk

II. unsystematic risk

III. systematic risk

Group of answer choices

I, II, and III

I and II

I and III

II and III

Question 20

Consider the following information on two stocks.

State of Economy	Prob. of State of Economy	Rate of Return (%) A B
Boom	.6	20.0 18.0
Bust	.4	10.0 0.0

A portfolio is invested 50% in Stock A and 50% in Stock B. The expected return on the portfolio is __________%. Round-off to 1 decimal place.

Group of answer choices

12.6

14.2

13.4

12.2

13.8

13.0