1. Evidence that newly issued stocks tend to underperform that market over the following years:
A) Is a natural result of risk aversion
B) Is exactly what you would expect in an efficient market.
C) Is inconsistent with the semi-strong form of the efficient market hypothesis.
D) Is evidence against the random walk hypothesis.
2. Distinguish between historical return and expected return
. Jones, Charles P.; Jensen, Gerald R.. Investments: Analysis and Management, 13th Edition (Page 190). Wiley. Kindle Edition.