Question: Question 3. Part A). What is the Random Walk Hypothesis and how does it apply to stocks? Part B). What is an efficient market? How

Question 3.

Part A).What is the Random Walk Hypothesis and how does it apply to stocks?

Part B).What is an efficient market? How can a market be efficient if its prices behave in a random fashion?

Part C).Please list two theoretical limitations of the Efficient Market Hypothesis (EMH).

Part D).Please list two empirical evidence that clearly against the EMH.

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