(a) At a cocktail party, one of your colleagues tells you that she has beaten the market for each of the past three years. Suppose that you believe her. Does this this shake your belief in efficient markets? Explain. (5 marks) (b) If the business cycle is predictable, and a stock has a positive beta, the stock's returns also must be predictable". Discuss this statement. (5 marks) Click or tap here to enter text