A written assignment in 2 parts. Each part must be clearly identified by starting on a new page.

Part 1: Explain the three forms of market efficiency put forward by Fama (1970).

Part 2: Critically discuss the evidence for and against the theory that stock market share prices fully and fairly reflect all known information. Give your own reasoned evaluation of the balance of this evidence and your views of whether it is possible to exploit market inefficiencies to consistently make abnormal returns by trading in shares using publically available information. Go on to explain the implications for investors and companies if it were concluded that the evidence supporting the efficient stock market hypothesis was very persuasive as far as past price and publically available information is concerned.