A Finance Manager needs some information on the following issue. As his assistant, you just came back from a conference, the Finance Manager wants you to write a REPORT explaining the issues below:

a) Research shows that some publicly available information such as dividend yields can be used to predict future security returns. Discuss whether this fact violates any form of the efficient market hypothesis.

b) briefly describe the three basic questions that a financial manager should address.

c) Explain why it is that in an efficient market, investments have an expected NPV of zero.

Support your answers with reliable references