Question: Question two (25 marks) The efficient market hypothesis postulates that in an efficient market prices of securities reflect all information about the security. In this

Question two (25 marks) The efficient market hypothesis postulates that in

Question two (25 marks) The efficient market hypothesis postulates that in an efficient market prices of securities reflect all information about the security. In this kind of financial market, it is impossible to formulate a trading strategy that will consistently 'beat' the market. Discuss five conditions (assumptions) necessary but not sufficient for a capital market to be efficient (25 Marks)

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