watch the video then answer the 4 questions

Answer the following questions after watching American Greed episode, The Insider: Raj Rajaratnam found at

Q.1 Describe in your own words the three forms of market efficiency.

  • Weak Form:
  • Semi-Strong Form:
  • Strong Form

Q.2 What are some examples from the video that show that markets may not be completely efficient?This video would lead one to believe that markets obtain what form of efficiency

Q.3 The mini case entitled, “Should You Hire an Ape as Your Investment Adviser?” found on page 128 of your text, would lead one to believe that markets are efficient or not efficient?This would suggest that markets obtain what level of efficiency?

Q.4 Do some of your own investigation and define in your own word the Grossman-Stiglitz paradox.Under what circumstances would markets follow semi-form efficient model.Under what circumstances do market only follow weak-form effiency?

Important Note:

– Use your own words ( No references , No Citation , No Quotes )

– Make the answers simple and good at the same time ( and not too long ) 3-5 sentences for each question.