The Platinum Monthly Stock-Picker Chronicle ('Platinum') has been the best performed stock tipping service over the last 3 years, with Platinum subscribers being able to consistently (over the last 3 years) 'beat' risk-adjusted rates of return in comparison to alternative stock tipping providers.

In the last year however, the number of subscribers to the Platinum stock tipping service has increased dramatically, to over 5 times the previous membership. It has been found that now, when Platinum provides a stock purchase recommendation, the stock price instantly rises several percentage points. This has reduced and indeed now all-but eliminated the 'excess' returns of Platinum subscribers.

Required:

a)Comment on the returns available to Platinum subscribers and the manner in which they have been discussed in this question, before and after the significant increase in membership, in terms of your understanding of the Efficient Markets Hypothesis (EMH).

b)Discuss whether the outcomes presented in this question are consistent with the EMH.