1. The Efficient Market Hypothesis implies that:
A. fundamental analysis is crucial in identifying mispriced securities
B. Actively managing a portfolio of stocks will produce superior returns
C. Passively managing a portfolio of stocks will produce superior returns
D. the only portfolio management strategy should be an indexing strategy
E. C and D
2. From January 20X1 to January 20X2, the USD appreciated 15% against the MXN.
In January 20X1, Ford sells its Fiesta cars in Mexico for MXN 306,000. If Ford wants a 80% exchange-rate pass-through on this drug, what will be the 20X2 price?
MXN 306,000
MXN 550,800
MXN 351,900
MXN 342,720