Consider the following three statements: (1) The momentum effect is one of the puzzling phenomena in empirical finance; (2) Fama and French argue that this effect can be explained as a manifestation of risk premium; and, (3) However, others disagree and argue that this effect evidence of inefficient markets. What do the above three statements actually mean? Explain and illustrate your answer using your own example(s).
The suggested word length is 200 to 400 words.