Instructions: Be sure to answer the question thoroughly. The question asks you to state your opinion; I am interested in how you arrive at your opinion and that you can back it up (the opinion itself has no impact on the grade, only that it's well supported).

1. Describe the three forms of the Efficient Markets Hypothesis and explain the behavioral finance critique of market rationality. Be sure to include evidence of why markets could be considered efficient and why they could be considered inefficient. Conclude by explaining if you feel markets are efficient, emphasizing why you feel that way.