46 John Smart discovers that for a certain group of stocks, large positive price changes are always followed by large negative price changes. This finding is a violation of the: 01:38:10 Multiple Choice Strong-form of the efficient market hypothesis. Weak-form of the efficient market hypothesis The moderate form of the efficient market hypothesis Semi-strong form of the efficient market hypothesis ME Gr MI O Type here to search 47 The yield to maturity on one-year zero-coupon bonds is 9%. The yield to maturity on two year zero-coupon bonds is 10% a. What is the forward rate of interest for the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 8 013754 Forward rate of interest b. If you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Short-term interest rate c. If you believe in the liquidity preference theory, is your best guess as to next year's short-term interest rate higher or lower than in b)? 47 of 501 ext > o E Type here to search