Harvard references

Required:

(a) Explain fully how the random walk theory of stock price movements differs from the weak form of the efficient markets hypothesis. Outline and critically evaluate two empirical studies which have been conducted to assess the validity or otherwise of the weak form of the efficient markets hypothesis.

(40 marks)

(b) Explain fully how the semi-strong form of the efficient markets hypothesis differs from the weak form of the efficient market hypothesis. Outline and critically evaluate two empirical studies which have been conducted to assess the validity or otherwise of the semi-strong form of the efficient markets hypothesis.

(40 marks)

(c) Explain fully how the strong form of the efficient markets hypothesis differs from both the weak and semi-strong forms of the efficient market hypothesis. Outline and critically evaluate one empirical study which has been conducted to assess the validity or otherwise of the strong form of the efficient markets hypothesis.