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Question 1: On your first day as equity analyst, you suddenly remember that you have learned during your undergraduate studies that there is a lot

Question 1:On your first day as equity analyst, you suddenly remember that you have learned during your undergraduate studies that there is a lot of evidence for the semi-strong form efficiency of stock markets.

Now you wonder yourself: how can it be that a huge security analysis industry exists although public information is already priced? Explain this apparent contradiction and how it can be resolved!

[20 points; do not use more than 200 words for your answer]

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