Explain the different forms of efficient market hypothesis


1) What is beta and how do you interpret it. (i.e Apple has a beta of 1.43, what does that mean)

2) Explain the different forms of efficient market hypothesis. Should insider trading be illegal if the market is strong form efficient?

3) Could you calculate the component cost of equity for a stock with nonconstant expected growth rates in dividends if you didn't have the information necessary to compute the component cost using the CAPM? Why or why not?

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Financial Management: Explain the different forms of efficient market hypothesis
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