Capital markets are sometimes described as being efficient in terms of the pricing of securities. (a) Explain what is meant by:

(i) the weak form (ii) the semi-strong form (iii) the strong form

of the Efficient Markets Hypothesis (EMH). (50%)

(b) What are the implications for: (i) investors (ii) financial managers of listed companies if the capital markets conform to the semi-strong form of EMH.

(50%)