The following statement contains several errors with reference to the three levels

of market efficiency:

"According to the efficient market hypothesis all share prices are correct at all

times. This is achieved by prices moving randomly when new information is

publicly announced. New information from published accounts is the only

determinant of the random movements in share price.

Fundamental and technical analysis of the stock market serves no function in

making the market efficient and cannot predict share prices. Corporate financial

managers are also unable to predict future share prices"

Explain the errors in the above statement.