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#5. Geothermal Corporation has just received good news: its earnings increased by 20% from last year's value. Most investors were anticipating an increase of 25%.

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#5. Geothermal Corporation has just received good news: its earnings increased by 20% from last year's value. Most investors were anticipating an increase of 25%. Will Geothermal's stock price increase or decrease in response to the news assuming the market is semi-strong efcient? #6. Firm A has offered to acquire Firm B for $10 per share pending regulatory approval of the deal and the deal has been publicly announced in the Wall Street Journal. However, Firm B's stock is only trading at $8 per share. Does this imply that the market is inefcient

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