2 Efficient Market Hypothesis (20 points) (1) Define the weak, semi-strong and strong forms of the Efficient Market Hypothesis. Explain how they differ. (2) Suppose that your security analysis has discovered that stock prices tend to rise significantly during the month of January. Does this finding provide evidence against the semi-strong form of the Efficient Market Hypothesis? (3) If individual stock prices follow a random walk process (they are as likely to go up as to go down on any given day) why do investors earn positive returns from the market on average over time?