The efficient market hypothesis is an extension of the supply and demand model.

Required:
a. Discuss the assumptions of the supply and demand model inherent in the EMH.
b. Why is the securities market viewed as a good example of the supply and demand model?
c. Discuss the three forms of the EMH. 49. Richard C. Breeden, chairman of the SEC, in testimony before the U. S. Senate Committee on Banking, Housing, and Urban Affairs, September 1990.