Part-II: Short Answer (40 points) 1. (10 points) Briefly explain the "strong-form efficient markets theory". 2. (10 points) Explain what "beta" measures. 3. (10 points) Please indicate (and briefly explain) by examining which of the below indicators one can understand a firm's: i) capital structure, ii) capital budgeting, iii) net working capital decisions. A) The long-term assets B) The debt and equity C) The short-term assets and liabilities 4. (10 points) What does a current ratio greater than 1 can tell us about a company