Chapter $10$ Revision questions

$1$ Explain the difference between 'weak form', 'semi$-$strong form' and 'strong form' concepts of market efficiency.

$2$ Would evidence that a fund manager whose portfolio has a beta of $1$ has performed better than the stockmarket $8$ years in a row be evidence against the semi$-$strong form concept of market efficiency? Explain your reasoning.

$3$ New information hits a company share such that the share price rises from $100$ pence to $120$ pence and then the share price rises gradually over the following six months to $150$ pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.

$4$ Briefly explain what is meant by the January effect and discuss its relevance to the weak form of market efficiency.

$5$ The stock market falls by $33$ per cent in one day: is this necessarily inconsistent with the efficient market hypothesis? Explain your reasoning.

$6$ What is meant by behavioural finance? Give two examples of behavioural effects and discuss their implications for market efficiency.