4) Efficient Market Hypothesis

a) Based on empirical evidence, what form of the EMH persists in most equity markets?

b) If an investor believes that all historical information as well as all public information is instantly recognized by the market price, what form of EMH does she believe persists in the market?

c) Why would a manager believe that they could generate alpha by investing in small-mid cap stocks when they believe that the EMH applies to large cap stocks?