Question: 1. a. Define an efficient capital market. (1 mark) (5 marks total) b. What is the main assertion of the efficient market hypothesis (EMH)? (1

1. a. Define an efficient capital market. (1 mark) (5 marks total)

b. What is the main assertion of the efficient market hypothesis (EMH)? (1 mark)

c. What is the implication of an efficient capital market for stock prices? (1 mark)

d. What is the major factor that contributes to market efficiency? How does it cause a market to become efficient? (2 marks)

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