Question 2 a)

1.) Three forms of efficient market are weak form efficient market hypothesis, semi-strong efficient market hypothesis and strong efficient market hypothesis.
Weak form efficient market hypothesis states the price of a stock is not affected by the future or the past information available and the any analysis to determine if the stock is overvalued or undervalued can actually help to overachieve returns in the market.
In semi-strong efficient market hypothesis states that with the availability of the public information the price of the stock will quickly change according to it and thus there are chances for the investors to earn decent return if they act fast according to the news available in the public.
In the strong efficient market hypothesis states the price of the stock is already inclusive of all the information available in the public and as well as to the insiders thus there are very less and hard chances for the investors to earn returns more than what the average investors earns.

2.) Under the modern efficient market hypothesis states that even if the current price of the stock is inclusive of the information that is available to the public and even to the insiders there is some possibility that the investors can earn some return over and above the average investor contrary to the convential strong efficient market hypothesis which states the current market price is inclusive of the information that is available to the public and even to the insiders and there is no possibility to earn more than what the average investors earns/abnormal gains.

3.) Starting with thee first statement that in the effecient market theory if the prices are right, there are no easy profit opportunities available this means in the strong market effecient theory any flaw or the information or technicals on the basis of which the investor tries to take a position on the stock for earning profit is already inclusive in the price of the stock that means that the currently at which the stock is trading is inclusive of the hidden information or any of the factors that are available to the other investors, thus the opportunity to earn profit is not there. Whereas in the second statement that states that in the absence of profits opportunities, it doesnot mean that the price of the stock is right, it means that even if all the information that is hidden or available to the public is included in the price of the stock itself it doesnt mean that the price of the stock is correct.