Please answer the following questions in detail, provide examples whenever applicable, provide in-text citations.

1. State if each of the following statements is true or false. Justify your answers.

The efficient-market hypothesis assumes that

a. There are no taxes.

b. There is perfect foresight.

c. Successive price changes are independent.

d. Investors are irrational.

e. There are no transaction costs.

f. Forecasts are unbiased.