a) A researcher wants to test whether a market for a cybercurrency is efficient in the weak form and ran the following random walk model regression: Rt = 0 + 1Rt-1. The result of the regression estimate is 0 = 0.58 with a t-value of 2.576 and 1 = 0.0354 with a t-value of 1.102. The critical t-value at 5% level is 1.96. Does this result support the weak form market efficiency? Explain.

b) Credit balances in brokerage accounts are at an all-time high. What would an investor who follows contrarian rule do? Why? What would an investor who follows the follow the smart investors rule do? Why?