Use the following three statement to answer this question: 1. Negative beta implies a negative standard deviation. II. PAB = 0.7 (correlation) implies that when the return of stock A increases by 10%, the return of stock B increases by 7%. III. If CAPM is correct, the expected return from non-systematic risk is zero. O a. Both I and II are correct. O b. Only II is correct. O c. Only III is correct O d. Both II and III are correct. O e. Both I and III are correct. Which of the following statements is incorrect? O a. Increasing disclosure of information about the firm enhances transparency in the market Ob. In a semi-strong efficient market, security analysts will not enable investors to realize superior returns consistently Oc. On average, investors can beat north American large cap stock markets using technical analysis. O d. Proponents of the efficient market hypothesis think technical analysts are wasting their time. oe. Relevant insider information can be useful in attempting to identify mispriced securities if the semi-strong form of EMH is assumed