Question 7 The financial systems that are operationally efficient are least likely characterized by: security prices that reflect fundamental values. O the use of resources where they are most valuable. O liquid markets with low commissions and order price impacts. O investors profit from inside informationQuestion 8 Suppose that the weak form of the Efficient Markets Hypothesis holds. Some investors can outperform other investors: (choose the most likely answer) \\ By doing technical Analysis 7' By analyzing stock trading volumn By doing fundamental analysis ' Both 1 and 2 " Both 1 and 3 \\ Both 2 and 3 Question 10 Assuming efficient markets and a lack of access to superior analysts, which of the following is the least important activity in managing portfolios? O Minimizing total transaction costs. O Diversifying completely on a global basis. O Paying close attention to the monetary policy environment. Follow a passive investment strategy