Question: (10 marks) If we are able to realize excess returns by using technical analysis, the market is efficient only in its weak form. True or

(10 marks)

  1. If we are able to realize excess returns by using technical analysis, the market is efficient only in its weak form. True or false? Explain your answer. (max 50 words)

(5 marks)

  1. Our company announces a merger today. Based on the market model, the expected return for our stock today was 1%. However, the actual return for our stock was 2.5%. Have we realized any abnormal returns, and if yes, what is their magnitude?

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