A) If you found a well-diversified portfolio with a negative alpha, what could be done...

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Finance

A) If you found a well-diversified portfolio with a negative alpha, what could be done to exploit this mispricing?

A

Sell short the well-diversified portfolio

B

Buy the well-diversified portfolio

C

Sell short the well-diversified portfolio and buy a tracking portfolio with the same beta

D

Buy the well-diversified portfolio and sell a tracking portfolio with the same beta

B) Which form of the efficient market hypothesis suggest that stock prices already reflect all public information?

A

Weak form EMH

B

Semistrong form EMH

C

Strong form EMH

D

Hyper awesome strong form

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