Question $1$

$($a$)$ Discuss the Semi$-$Strong Form Efficient Market Hypothesis $($SSFE$).$ Identify the main tests used to examine the SSFE, and briefly summarise the results of these tests.

$(70$ marks$)$

$($b$)$ The DAX cash price is $12,000,$ the interest rate or 'risk$-$free' rate is $4\%$ and the dividend yield on the DAX index is $2\%$ presently. What are the expected prices of the $3,6$ and $9$ month DAX financial futures contracts?

$(30$ marks$)$