One of your colleagues says that the stock market is not efficient because some

accounting rations have been shown to have predictive powers.

i$.$ Explain which of the main forms of efficiency is most relevant to this situation.

$(2$ marks$)$

ii$.$ Comment on whether you agree with your colleague.

$(2$ marks$)$

iii. Explain the difference between active and passive fund management in terms

of the concept of market efficiency.