Manchester United plc, the quoted football and leisure group, wins the cup and therefore can anticipate greater revenues and profits. Before the win in the final the share price was 640p.

a What will happen to the share price following the final whistle of the winning game?

b Which of the following suggests the market is efficient? (Assume that the market as a whole does not move and that the only news is the football match win.)

(i) The share price rises slowly over a period of two weeks to reach 700p.

(ii) The share price jumps to 750p on the day of the win and then falls back to 700p one week later.

(iii) The share price moves immediately to 700p and does not move further relative to the market.