Business Finance

Part 1: If the market is efficient, what is the expected stock price reaction to an earnings announcement before day 0, on day 0 and after day 0?

Part 2: Based on the stock price below, is the market efficient?

*Dates with no stock prices are on weekends, stock exchange closed.

Graph of stock price from trading day -5 to trading day 5 265 260 255 250 245 LI 240 29/04/2021 30/04/2021 28/04/2021 26/04/2021 27/04/2021 Date 20/04/2021 21/04/2021 22/04/2021 23/04/2021 24/04/2021 25/04/2021 1/05/2021 2/05/2021 3/05/2021 4/05/2021