2. Market Efciency Are security markets efcient? in formulating your response, provide evidence that demonstrates that markets are efcient; also, offer specic evidence that suggests that markets are not efcient? Why is the view about market efciency important to the valuation process? 3. Beatitude of Efcient Markets The beatitude of efcient markets suggests that "blessed are those who believe in the inefciency of nancial markets and the predictability of prices, for it is through their efforts to prove that markets are inefficient that we are truly blessed with efciency." What does this statement mean? 4. Risk-free Rate How should an analyst determine the riskfree rate that is to be used in any particular valuation assignment