5. Describe how you would compute the abnormal rate of return for a stock for a period surrounding an economic event. Give a brief example of a stock with a beta of 1.40.

6. Assume you want to test the EMH by comparing alternative trading rules to a buy-and-hold policy. Discuss the three common mistakes that can bias the results against the EMH.

7. Prepare a conclusion paragraph, summarising all the points raised in your discussion.