i.    Describe how you would test if a market is “excessively volatile”.                     [7 Marks]

ii.   Explain the practical and conceptual difficulties in using a test of an excessively volatile market to establish whether or not a market is efficient. [4 marks]                                                  

Answer rating: 100% (QA)

i To test if a market is excessively volatile I would conduct the following steps 1 Data Collection Gather historical price data for the assets traded ... View the full answer