8. Briefly explain these common sayings among investors and then comment on whether you agree or disagree with them. [10 marks] a) If markets are semi-strong form efficient and all available information has already been priced into stock prices, then buying stocks is similar to a gambling at a casino. [3m] b) Stock prices cannot possibly follow a random walk if much of companies' future prospects are predictable. [3m] c) If you are an active manager of a mutual fund that invests in small-value stocks, you would prefer your performance to be evaluated in a CAPM model comparing to Fama-French three-Factor Model. [4m]