1. Suppose that Intel announced yesterday that its 4th quarter earnings will be 10% higher than last year's 4th quarter. You observe that Intel had an abnormal return of -1.2% yesterday. Is this possible if markets are efficient? Please explain your reasoning.

2. Consider a Mexican closed-end fund that is a claim to $100 of underlying assets per share and is trading at a price of $150 per share. Explain how you could take advantage of this mispricing, and what risks this strategy entails.