1. Random price movement indicate ?

A. irrational markets

B. that prices cannot equal fundamental values

C. that technical analysis to uncover trends can be useful

D. that momentum trading strategy cannot earn abnormal return

E. that markets are functioning ineffciently

2. The tendency when the ______ performing stocks in one period are the best performers in the next and the current ________ performers are lagging the market later is called the momentum effect.

A. Worst;best

B. Worst; Worst

C. Best; Worst

D. Best:Best