1) XYZ corporation issued the press release before stock market opened announcing that its earnings have reduced by 30% over last year earnings. Describe how each of given individual scenarios could be consistent with semi-strong form of market efficiency.

a) When trading opened after the announcement and throughout first day, there was no stock price change after company announced 30% decrease in earnings.

b) Stock price of XYZ increased slowly over thirty days before announcement of 30% decrease in earnings.

c) Stock price reduced by 10% immediately following announcement but then increased throughout the day so that closing price was only= 2% below previous day.

Requirements
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