1.During the MBA study school at the North West University last summer, four students decided to form an investment club. They made the following proposals for the new equity investment for the club:

I.George proposes that they buy shares in South32 ltd because it has performed poorly during the past two years and so they are due for an upturn.

II.Grace wants to invest in Sibanye Gold ltd. There is a rumour that they have appointed the head of marketing. This new employee is believed to have had success at other companies. So Grace felt that this new employee will have a positive effect at Sibanye Gold ltd.

III.Tshepo believes in selecting shares at random. He recommended that they buy shares in FNB ltd.

IV.Peter wants to buy shares in Dischem ltd. His brother works for Discovery health ltd and has insider information that Dischem ltd's shares will rise sharply in the near future when it is announced that Discovery health ltd has appointed Dischem ltd as its pharmacy of choice.

Explain the share selection strategy of each member in light of the following:

a)strongly efficient,

b)semi-strongly efficient,

c)weakly efficient and,

d)inefficient markets[16 marks]