1. Find an announcement of new information made within a month from today (i.e., earnings announcement, merger, etc.) for any publicly traded stock that moves the stock price at least 1%. Print out or draw a chart that shows at least 2 days before the event and at least one day after. [Note: make sure you find the first announcement of the information.]

a) Using this chart, analyze if the evidence is consistent with the semi-strong form market efficiency.

b) Is the stock market reaction consistent with the strong form of market efficiency?

2. Geothermal corporation issued a press release before the stock market opened announcing that its earnings have decreased by 30% over the last year earnings. describe how each of the following individual scenarios could be consistent with the semi-strong form of market efficiency.

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

(b) The stock price of Geothermal increased slowly over the 30 days before the announcement of the 30% decrease in earnings.

(c) The stock price decreased by 10% immediately following the announcement but then increased throughout the day so that the closing price was only 2% below the previous day.