a. (5 points) Suppose Moderna COVID vaccine is approved and it is announced today in the morning at 9AM. According to the efficient market hypothesis, should the price of Moderna stock adjust right away after 9AM? Why? Under what conditions might it adjust slowly over time? b. (5 points) Explain in your own words the meaning of systematic risk and unsystematic risk? Provide an example of each type of risk. c. (5 points) Why is there is less unsystematic risk in a portfolio with many stocks- Explain why and how unsystematic risk gets diversified away? d. (10 points) What is the typical annual volatility or standard deviation of annual returns (%) of a large capitalization stock (e.g., a Dow 30 stock)? Explain how that total variance can be between market and to unsystematic risk? Give a numerical example. What are the proportions of each component for the average stock with a beta of 1 (use the typical amount of annual volatility to illustrate)