Question $4(10$ points$)$

TRUE or FALSE? Provide a brief explanation for your answer.

a$.$ If markets are efficient in the semi$-$strong form, then market prices reflect all information in past

prices and in company financial statements but not information in financial news reports.

b$.$ Strong$-$form market efficiency requires that the market price be equal to true value at every

point in time.

c$.$ If markets are efficient in the strong form, then market prices reflect all information in past

prices.

d$.$ Weak$-$form market efficiency implies that trading strategies based on technical analysis of past

prices$/$returns can never outperform the market.