5. Below is the Shiller P/E ratio over time. This measures the total market's price (market capitalization) divided by total market earnings. Shiller and Fama both look at this graph and come to very different interpretations regarding EMH. Detail Shiller's view about what the graph below tells us about EMH and how exactly we can form a trading strategy to exploit the below graph. What is Fama's response to this exactly? (4 points) 45 40 Black Tuesday 30 2473 25 20 Black Monday when they 10 5 1900 1930 1940 1950 1960 1370 1980 1990 2000 2010 4. Below is a picture of the average company reaction to CNBC reports. The 0 date is right when a particular news event is mentioned on CNBC. The cumulative abnormal returns to the company are on the y-axis and minutes are on the x-axis. (4 points) Does this picture support or contradict the Efficient Market Hypothesis? Discuss and justify your response Midday-Positive Midday-Negative 0.75 0.50 0.25 0.00 Cumulative return (%) -0.25 -0.50 -0.75 -1.00 -1.25 -1.50 -15 -10 10 15 -5 0 5 Minutes relative to mention