1. Which of the following would violate the efficient market hypothesis?
Intel has consistently generated large profits for years.
High-earnings growth stocks fail to generate higher returns for investors than do low earnings growth stocks.
Prices for stocks before stock splits show, on average, consistently positive abnormal returns.
Investors earn abnormal returns months after a firm announces surprise earnings.
2. Is the interest paid on any municipal bond free of both default risk and federal income taxation.