Exam Empirical Finance 1007

vrre Universiïeit w"_ sterda rn

F a c u l l yo l ' I i r o n n n r i c sa n r l B u s i r r c s s
D e p r r t l n c n to l ' l . ' i n a n c c

Exam: l i n r p i r i c l lF i r r a n c e

Progr-am: \4aster''s p"'riod,tr.I
pfograrnirr lr'irrance,

Code: 60432070

l.-ccturer: f)r. Roiliur Kriiussl

Datc: O c t o b c2
r 2.2041
'l'imer:
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Duration: 2 h o u r sa r r d . 1 r5r i n u t e s

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* , i l h o L r kt n o r v i n gl l r c a n s t " er t o b ) , Í ' h e n r a r i r ' t r u rrrrru r n b e ro f ' p o i n r sí b r
c i r c hs t r b - q L r c s t i oi sn J . \ ' o r , rc l i r rr c ; r c l ri r r t o t u l í r ( )l o i r t s .

C r a d c sn u t l c k r o r i , n : l - h eg l r d e s r i i l l b c r l l d c p L r L r l iocn ' I u c s d a \ ' O
. clobcf ]0,2007.

Inspcction: l t i s p o s s i b l t -t o i n s p c c tv o L r rc x a n r p s p c r o i l W c d n e s d l y , O c t o b c r l l .
2 0 0 7 i r t 1 5 . " 1 r0n l A - 1 3 .

Renralks: [ J e r r o t t c i s ca t r d c o r t r p l e t er n ) ' u u l l n s \ \ e r s . A l r v a y s e . r l t l l i i r ry o r i r '
r r l r s w e r se,v c n i { ' n o t e x p l i c i l l l ' c a l l e df o : ' . U s c v o u l ' t i t l e e l f i c i c n t l y .
L . l s et h e r r r l r r i n r u nlrr u n r b e ro f p o i n t s p e l q L r e s t i o a
n s a g u i d el i r r e .




G o o dl u c k a n d s u c c e s s !

, Question l: Behavior"alliinance

a) 13chaviora Í ' li n r n c er f g u e st i r a t" p c o p l ed o r l a l < ca d i f t e r c r r c e "[ .) i s e u s st l r i s
statemcntin the contextoí'llnanei;rlnrrrkcts.

b) lJric111,
cliscLrss
the conccpto1'"'prospccL
thcor'-r'"'.
'l'hulci'
c) Bric.flydiscLrss nrcasol't'cal lrnancialntarl<cts thrt iire accolt'iirrg
1o
( 1999) "nrost at odcls" rvith tlrc tlicolies in st;rrrciartJ [lnaircc textbooks.
Bricfly explarrrrvhy Fattra(1998) beli*,cs tlrat thcse "lorrg-tenl rcfunr
a n o r t t a l.i"e r r i l l d i s l r g l p crA) \ru' f t i n r c .

d ) B r i e f l 1 ' d i s o u s"sl i r a i t st o a r b i t r a g ea" n d d i s c r . r si tss c m p i r i c a e
l v i d e r r c seu c h
(i) (ii)
as tivin shares, inclexinclusiorrs, ancl (iir) intentetciirve*oLlts.