QUESTION 8

The efficient market hypothesis says, except one:

A.

No one can ever beat the market over a ten-year period

B.

Investors might hold different portfolios

C.

Insider trading should be unethical, but it exists in real market situations

D.

Even a skillful analyst cannot beat the market systematically

E.

Forecasting future stock price is not possible in a systematic way

QUESTION 9

A security has systematic risk 0.75 and the risk-free rate is 7.4%. The market risk premium is 10.35%. The required rate of return of the stock and the expected market return is respectively:

A.

12.46%; 5.65%

B.

15.16%; 17.75%

C.

15.0%; 2.95%

D.

12.46%; 15.05%

E.

15.16%; 2.95%

please anwser both:)))