Question: Question Two a) Explain in detail the Efficient Market Hypothesis Theory 4 marks b) A company offer annual payments of K100 at the end of

Question Two a) Explain in detail the Efficient Market Hypothesis Theory

Question Two a) Explain in detail the Efficient Market Hypothesis Theory 4 marks b) A company offer annual payments of K100 at the end of each year for the next three years. i. What is the present value of this annuity discounted at 10%. 2 marks ii. Suppose the payments were made at the beginning of each period instead of at the end? What is the present value of this annuity then? 2 marks c) What are financial intermediaries and what economic function do they perform? 6 marks

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