A.Briefly explain the concept of the efficient market hypothesis (EMH) and each of its three forms and briefly discuss the degree to which existing empirical evidence supports each of the three forms of the EMH. b. Briefly discuss the implications of the efficient market hypothesis for investment policy as it applies to technical analysis

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.