Question: Questions: (a) Explain the difference between valuation, informational and allocative efficiency. (b) Explain the joint-hypothesis problem encountered when testing for informational efficiency of a market.

Questions:

(a) Explain the difference between valuation, informational and allocative efficiency.

(b) Explain the joint-hypothesis problem encountered when testing for informational

efficiency of a market.

(c) Explain the 'January effect' in stock markets and discuss the evidence for this effect.

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