Question: Question 2 a) i. Explain what is meant by the term 'semi-strong form market efficiency'. (10%) ii. Define 'fundamental analysis' and critically evaluate the

Question 2 a) i. Explain what is meant by the term 'semi-strong

Question 2 a) i. Explain what is meant by the term 'semi-strong form market efficiency'. (10%) ii. Define 'fundamental analysis' and critically evaluate the implications of a semi-strong form efficient market for fundamental analysis. (20%) b) The 'Small Firm Effect' is an efficient market anomaly. Required: c) i. Explain what is meant by the term 'efficient market anomaly'. (10%) ii. Explain and critically assess possible rational explanations for the Small Firm Effect. Your answer should refer to relevant empirical evidence. (20%) In behavioural finance, overconfidence is often described as an information processing error. Required: i. Explain what is meant by the term 'information processing errors' and critically assess its significance in behavioural finance. ii. Critically evaluate the importance of overconfidence in investment decision making. (20%) (20%) (Total 100%)

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