Respond to the following comments by

a) judging whether they are correct or not;

b) give reason/s for your answer in a)

1. If markets are at least weak form efficient, only analysing the pattern of historical prices and look for a trend can help investors to earn abnormal returns.

2. If CEOs and Board of directors in the firm could not earn better returns compared to normal investors, this implies that the market is weak or semi-strong efficient;

3. When active managed fund performs better than passively managed fund (after taking into account the fees), the market is semi-strong efficient.

4. The capital markets are similar to a casino if stock prices follow a random walk.

5. Assume that a company announces an unexpected large cash dividend to its shareholders. In an efficient market without information leakage, one might expect an abnormal price change at the announcement.