Question: QUESTION 3: (25 marks) a) Under the efficient market hypothesis, would securities be properly priced? (6 marks) b) Are markets moving toward being more efficient

QUESTION 3: (25 marks) a) Under the efficient market hypothesis, would securities be properly priced? (6 marks) b) Are markets moving toward being more efficient or toward being less efficient? (6 marks) c) Briefly discuss why there is no reason to believe that the market will reward investors with additional returns for assuming unsystematic risk. (6 marks) d) Provide an intuitive discussion of beta and its importance for measuring risk. (7 marks)

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