1. What is not a reason technical analysis might be profitable?
A. Efficient markets hypothesis validates the use of technical analysis
B. Stock prices may move in trends that can be identified using certain indicators
C. Technical indicators may indicate changes in supply and demand of a security would affect price trends
2. A fundamental idea of CAPM is that:
diversification is costly, hence investors will care only about systematic risk.
diversification requires the investor to keep track of the performance of a larger numbers of stocks.
investors are able to diversify costlessly, therefore being able to get rid of firm-specific risk.
None of the above.