3. Long-Term Capital Management (LTCM) was a quantitative hedge fund managed by some of the most prominent financial engineers. The hedge fund survived for four years. In the first year it made return of 21%, 43% in the second, 41% in the third and it lost everything in the fourth year. The hedge fund relied on the past stock prices to predict the future. Assuming that the mathematical models used by LTCM were correct, the LTCMs performance suggests that:

a) Market is efficient in the weak form

b) Market is efficient in the semi-strong form

c) Market is efficient in the strong form