Stock & Bond Investments: Chapter $9($Part $1)$ Assignment

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$1.$ In the prior chapter we learned that stock prices rapidly incorporate new information, which is known formally as the efficient markets hypothesis.$$ Describe the Weak Form of the efficient markets hypothesis.

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$2.$ Describe the Semi$-$Strong Form of the efficient markets hypothesis.

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$3.$ Describe the Strong Form of the efficient markets hypothesis.

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$4.$ If new information is not disclosed through public sources, insider trading, which is an illegal activity can be the result.$$ Describe insider trading and explain why this should be illegal.$$ Who regulates this law?

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$5.$ One of the types of investments that are closely linked to efficient markets is the concept of arbitrage.$$ Please explain arbitrage in simple terms and give an example.

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$6.$ The efficient market hypothesis states that trading in and out of securities doesn$$t make much sense.$$ Why do you think investors use this technique if they statistically aren$$t able to beat the market?$$ Why wouldn$$t they just buy index funds?

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$7.$ Describe market anomalies.$$ Are they truly contrary to the efficient markets hypothesis?

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$8.$ Describe the January Effect as it relates to the stock market.

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$9.$ Describe the Small Firm Effect as it relates to the stock market.

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$10.$ Describe the Value Effect as it relates to the stock market.