Question: 1. (30 marks) Efficient Market Hypothesis a. Explain in your own words what it means when we say that the capital market is efficient. (6

1. (30 marks) Efficient Market Hypothesis

a. Explain in your own words what it means when we say that the capital market is efficient. (6 marks)

b. Name three key implications of efficient markets and explain why each one can be explained by the hypothesis that the markets are informationally efficient. (24 marks)

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