The efficient market hypothesis (EMH) holds that all securities are priced rationally in the market, that is, that prices fully reflect all available information. Because all information is contained in stock prices it is impossible to beat the market over time without taking on excess risk. Support or criticize the concept that markets are efficient.

2. Do prices in the stock market reflect all public information? Does everyone have access to this 'public' information? Is there a cost of acquiring this 'public' information? Why or why not?

3. Are there market imperfections? If so, discuss the possible causes of persisting market imperfections. If not, why not?