Question: (8 marks) Efficient Market Hypothesis a. Explain in your own words what it means when we say the capital market is informationally efficient. (3 marks)

(8 marks) Efficient Market Hypothesis

a. Explain in your own words what it means when we say the capital market is informationally efficient. (3 marks)

b. If the capital market is efficient, as defined in part a above, one should not be able to find undervalued stocks. Do you agree with this statement? Explain. (5 marks)

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