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a) Explain the rationale of Fama-French three factor model? How does it differ from the Capital Asset Pricing Model? (5 marks) b) Explain the difference

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a) Explain the rationale of Fama-French three factor model? How does it differ from the Capital Asset Pricing Model? (5 marks) b) Explain the difference between price momentum strategy and an earnings momentum strategy. When might these two strategies produce similar portfolios? (5 marks) C) Discuss the weak, semi-strong and strong form Efficient Market Hypotheses (EMH). Explain tests which can be used for testing the weak form EMH and semi-strong EMH. (10 marks) (Total 20 marks) a) Explain the rationale of Fama-French three factor model? How does it differ from the Capital Asset Pricing Model? (5 marks) b) Explain the difference between price momentum strategy and an earnings momentum strategy. When might these two strategies produce similar portfolios? (5 marks) C) Discuss the weak, semi-strong and strong form Efficient Market Hypotheses (EMH). Explain tests which can be used for testing the weak form EMH and semi-strong EMH. (10 marks) (Total 20 marks)

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