Question 1: Identify the given statements are True (T) or False (F).
Provide brief explanation when necessary
1. Tests have shown that there is almost perfect negative correlation between successive price changes.
2. The semi-strong form of the efficient-market hypothesis states that prices reflect all publicly available information.
3. In efficient markets the expected return on each stock is the same.
Question 2: Comment briefly the statement
"Unlike American firms, which are always being pressurized by their shareholders to increase dividends, Japanese company pay out a much smaller proportion of earnings and so enjoy a lower cost of capital"