Question: The expected return for Westport stock calculated using the CAPM is 7.5%. The risk-free rate is 0.75% and the beta of the stock is 1.4.

The expected return for Westport stock calculated using the CAPM is 7.5%. The risk-free rate is 0.75% and the beta of the stock is 1.4. Calculate the implied market risk premium.

Can a market be (1) weak-form efficient, (2) semi-strong efficient, and (3) strong-form efficient at the same time? Briefly explain why or why not.

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