Question 1 (a) Discuss the Semi-Strong Form Efficient Market Hypothesis (SSFE). Identify the...

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Accounting

Question 1
(a) Discuss the Semi-Strong Form Efficient Market Hypothesis (SSFE). Identify the main tests used to examine the SSFE, and briefly summarise the results of these tests.
(70 marks)
(b) The DAX cash price is 12,000, the interest rate or 'risk-free' rate is 4% and the dividend yield on the DAX index is 2% presently. What are the expected prices of the 3,6 and 9 month DAX financial futures contracts?
(30 marks)
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