1. The January effect relates to the ________________ of _______________ in the month of January.
a. abnormal returns; large stocks
b. abnormal returns; small stocks
c. arbitrage; small stocks
d. arbitrage; large stocks
2. If markets are efficient, then stock prices will:
a. overreact to new and relevant information.
b. underact to new and relevant information.
c. not react to new and relevant information.
d. reflect all new and relevant information quickly.