Write an essay between 800 and 1200 words (excluding references), consisting of two tasks:
1. Read the article in Journal of Economic Perspectives, From Efficient Markets Theory to Behavioral Finance, (published in winter 2003 by Robert Shiller). Explain the efficient market hypothesis and the weakness of Efficient Market Hypothesis (approximately 300 to 500 words).
2. In the end of the paper, Shiller states the following:
Indeed, we have to distance ourselves from the presumption that financial markets always work well and that
price changes always reflect genuine information.
Discuss how Shiller reached this conclusion and your view on this statement (approximately 500 to 700 words).