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a. Discuss the three forms of market efficiency and explain each form with respect to how you can make a profit through trading. [] b. If markets are efficient, what should be the correlation coefficient between stock returns for two nonoverlapping time periods? [] c. Why the following "effects" considered to be efficient market anomalies? Are there rational explanations for these effects? [] i) Book-to-market effect ii) Momentum effect iii) Small firm effect d. Briefly explain the roles and responsibilities of portfolio managers in an efficient market. []

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