1. Briefly state and discuss the three forms of the efficient market hypothesis (EMH). What is the main implication that comes out of all forms of the EMH?
2. In the predictability lecture, we discussed evidence concerning violations of the weak form of the EMH that are based upon lagged return trading strategies. Briefly discuss the three types of strategies (that is, long, intermediate, and short return horizons). In your discussion of each horizon, discuss the basic method used to form portfolios, what the results are (that is, do returns exhibit reversals or continuations), and the average level of profits.