A. The basic efficient market hypothesis theorizes that the market cannot be beaten because it incorporates all important determining information into current share prices. Therefore, stocks trade at the fairest value, meaning that they can't be purchased undervalued or sold overvalued.

i. Explain THREE (3) reasons that the Efficient Market Hypothesis may be incorrect (8 marks)

ii. Discuss the THREE (3) forms of Efficient Market Hypothesis, including the implications as it applies to technical traders and fundamental analyst. (12 marks)