11 Market efficiency. The following two comments were drawn from separate articles in a highly respected financial newspaper:

‘Market efficiency does not mean that share prices can be forecast with accuracy.’

‘The research department of a large firm of stockbrokers has developed a multiple regression model, based on data collected between 1964 and 1994, which is claimed to give statistically significant results for predicting share prices.’
Discuss these comments and explain why they are not contradictory.