1. Which of the following statements is (are) correct?
A. If a market is weak-form efficient, it is also semi-strong-form and strong-form efficient.
B. If a market is semi-strong-form efficient, it is also strong-form efficient.
C. If a market is not semi-strong-form efficient, it must also be not weak-form efficient.
D. If a market is not strong-form efficient, it must be neither semi-strong- nor weak-form efficient.
E. If a market is not weak-form efficient, it must be neither semi-strong- nor strong-form efficient
2. An implication of the efficient market hypothesis is that __________.
A. high-beta stocks are consistently overpriced
B. low-beta stocks are consistently overpriced
C. high-beta stocks are consistently underpriced
D. low-beta stocks are consistently underpriced
E. negative alphas will persist
F. negative alphas will quickly disappear