1. Studies by Ball and Brown (1968) and Fama, Fisher, Jensen, and Roll (1969) show that
There is some insider information that is reflected in stock prices.
Abnormal returns are not achieved due to public news
Stock prices fully react to earnings reports in less than a week.
None of the above.
2. Which of the following is true about the January effect?
It occurs only in the United States.
It is more pronounced for small firms than for large firms.
It may be due, in part, to tax loss-selling effects.
Both a and c.
Both b and c.
3. Stock-market anomalies offer proof of the validity of:
The market model.
The CAPM.
APT.
None of these.