A. A hundred years ago or so, companies did not compile annual reports. Even if you owned stock in a particular company, you were unlikely to be allowed to see the balance sheet and income statement for the company. Assuming the market is semi-strong-form efficient, what does this say about market efficiency then compared to now?

B. Which of the following statements are true about the efficient markets hypothesis?

a. It implies perfect forecasting ability.

b. It implies that prices reflect all available information.

c. It implies an irrational market.

d. It implies that prices do not fluctuate.

e. It results from keen competition among investors.

C. A famous economist just announced in The Wall Street Journal his findings that the recession is over and the economy is again entering an expansion. Assume market efficiency. Can you profit from investing in the stock market after you read this announcement?