1.Discuss the implications of the empirical evidence on market efficiency for

(a) technical analysis

(b) fundamental analysis

2.The standard deviations of returns on assets A and B are 12 per cent and 6 per cent, respectively. A portfolio is constructed consisting of 30 per cent in Asset A and 70 per cent in Asset B. Calculate the

portfolio standard deviation if the correlation of returns between the two assets is: 1. 1

2. 0.5

3. 0

4. -1

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