Antonia Efficient went to a major investment conference in Boston and heard Andrew Lo, a prestigious

MIT Finance professor. Andrew said that the market is efficient in quickly incorporating available relevant information into the stock price.

Antonia was planning to heavily invest in the stock market to recover part of her business losses. But she is not sure now. She wants to hear your expert opinion but in layman terms (arroz y habichuela) about Andrews opinion.

Required:

a. What arguments do you have?

i. In favor

ii. Against

Andrews statement. (Be thorough)