Question 1
Efficient market proponents tend to explain market anomalies as
◦ inaccurate risk measurements.
◦ temporary phenomena.
◦ statistical accidents.
◦ All of these
Question 2
Even after adjusting for risk, ________ firms have, over long periods of time, earned higher returns than ________ firms.
◦ small; large
◦ large; small
◦ new; old
◦ old; new