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Within the context of the Efficient Market Hypothesis (EMH), financial analysts often debate the predictability of stock prices based on historical and public information. Briefly

Within the context of the Efficient Market Hypothesis (EMH), financial analysts often debate the predictability of stock prices based on historical and public information.

  1. Briefly explain the three forms of the Efficient Market Hypothesis.
  2. If a renowned financial research institution publishes a bullish report on the tech industry and, simultaneously, a prominent tech company's CEO tweets about a significant breakthrough in their latest project, how would each form of EMH predict the market's reaction?
  3. Assume that an investor possesses insider information regarding a pharmaceutical company's groundbreaking drug trial results before they're publicly released. According to the EMH, how likely is the investor to achieve abnormal returns if they act on this information?

will downvote for wrong one!!

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