1. The efficient market hypothesis assumes that
there are only a few buyers and sellers in a stock market and stocks are illiquid
there are many buyers and sellers in a stock market and stocks are illiquid
there are only a few buyers and sellers in a stock market and stocks are liquid
there are many buyers and sellers in a stock market and stocks are liquid
2. In the CAPM, if a stock has a large beta coefficient, then
the stock's return is less volatile than the market's average return
the stock's return is about as volatile as the market's average return
the stock's return is more volatile than the market's average return
the stock's risk is greater than its expected return