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One of your colleagues says that the stock market is not efficient because some accounting rations have been shown to have predictive powers. i .
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.
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ii Comment on whether you agree with your colleague.
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iii. Explain the difference between active and passive fund management in terms
of the concept of market efficiency.
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