Term
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Definition
| True or false: if an investor can use past returns to construct a trading strategy htat makes consistent profit, it is evidence that market portfolio is not efficient |
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Term
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Definition
| True or False: Investors might expect stocks to have non-zero alphas if the market proxy portfolio is not highly correlated with the true market portfolio, even if the true market portfolio is efficient |
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Term
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Definition
| True or false: if some investors are subject to systematic behavioral biases while others select efficient portfolios, then the market portfolio will not be efficient |
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Term
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Definition
| True or False: an employee who cares about the risk due to human capital will likely underweight the amount of money he invests in his own company's stock relative to an investor who does not work for his company |
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Term
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Definition
| The disposition effect reduces investor's tax obligations |
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