1.) i) In 1987, trader Ivan Boesky was accused of insider trading based on his massive purchases of stock of firms before announcements of acquisitions of those firms. Which of the following is true?

a) This indicates the market is strong-form efficient

b) This indicates the market is at best semi-strong form efficient

c) Insider trading indicates the market is weak-form efficient

d) Insider trading does not indicate anything regarding market efficiency.

ii) If the share price automatically adjusts when there is information that has not been distributed to investors, which of the following types of market efficiency is best evidenced?

a) weak form

b) semi-strong form

c) strong form

d) semi-weak form

iii) Which of the following forms of market efficiency should be least likely in a country which has insider trading laws?

a) strong form market efficiency

b) semi-strong form market efficiency

c) weak form market efficiency

d) semi-weak form market efficiency