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A) If you found a well-diversified portfolio with a negative alpha, what could be done to exploit this mispricing?
| A | | Sell short the well-diversified portfolio |
| B | | Buy the well-diversified portfolio |
| C | | Sell short the well-diversified portfolio and buy a tracking portfolio with the same beta |
| D | | Buy the well-diversified portfolio and sell a tracking portfolio with the same beta |
B) Which form of the efficient market hypothesis suggest that stock prices already reflect all public information?
| A | | Weak form EMH |
| B | | Semistrong form EMH |
| C | | Strong form EMH |
| D | | Hyper awesome strong form |
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