Question: Efficient Market Hypothesis has and is still being an issue in modern investment and one of the main theories underpinning financial markets. Suppose you observed

Efficient Market Hypothesis has and is still being an issue in modern investment and one of the main theories underpinning financial markets. Suppose you observed that high-level managers make superior returns on investments in their company's stock. Would this be a violation of weak-form market efficiency? Would it be a violation of strong-form market efficiency? [15 marks] 5. If the weak form of the efficient market hypothesis is valid, must the strong form also hold? Conversely, does the strong-form efficiency imply weak-form efficiency? [15 marks]

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