a) Explain clearly the following terms: 1. Weak form efficiency 2. Semi-strong form efficiency 3. Strong form efficiency

b) Discuss and identify which form of efficiency the following markets are adhered to and/or violated: (i) Some stocks perform substantially better than the market while some stocks perform significantly worse than the market in any given month. (ii) Stock returns tend to be higher in January than in other months. (iii) Roughly half of a group of professional portfolio managers beat the market during 2011. (iv) Consistently superior returns are earned by buying a companys stock the day after an announcement of an increase in the companys earnings.