a. Suppose you observed that high-level managers make superior returns on investments in their companys stock. Would

Question:

a. Suppose you observed that high-level managers make superior returns on investments in their company’s stock. Would this be a violation of weak-form market efficiency? Would it be a violation of strong-form market efficiency?

b. If the weak form of the efficient market hypothesis is valid, must the strong form also hold? Conversely, does strong-form efficiency imply weak-form efficiency?

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