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6. State whether the following are true or false. Explain your statement. (1) A finding that small firms earn higher returns than large firms would

6. State whether the following are true or false. Explain your statement.

(1) A finding that small firms earn higher returns than large firms would provides evidence against the weak form of the efficient market theory. (5 marks)

(2) Proponents of the EMH typically advocate a passive investment strategy. ( 5 marks)

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