We calculate both variance and standard deviation because

1. We calculate both variance and standard deviation because: a. Variance is easy to do math with, standard deviation is easy to visualize b. Variance is more vulnerable to small sample errors C. One works best with scenario data, the other works best with time series data d. All answers are correct 2. Which of these statements is correct? a. Weak form efficient market hypothesis implies it would be very difficult to beat the market by asking your friend at JP Morgan about unannounced merger deals he is working on b. Semistrong market efficiency implies it would be very difficult to beat the market by reading the Financial Times C. Strong market efficiency implies it would be very difficult to beat the market by studying old stock prices d. None of the other answers are correct 3. The CAPM market beta of riskless debt is: 1 b. -1 0 d. Infinity 4. The Law of One Price states that All assets must trade at the price suggested by the CAPM b. Prices only change in response to new information Two economically identical assets cannot trade at different prices for very long d. All rational investors must hold the market portfolio 5. Which of the following assets would you expect to be the most liquid? a. Money market securities b. Long term debt C. Equity d. Preferred shares a. C. a. c