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e. Based upon your calculations, what do you think the expected price will be on August 1 and what assumptions did you make to arrive
e. Based upon your calculations, what do you think the expected price will be on August 1 and what assumptions did you make to arrive at this expected price? (4 marks) f. What form of market efficiency did you use to calculate the expected price? Explain. (2 marks) g. You were listening to the news at supper time and you heard a report of a pending new product that company A will introduce to the market next week that will change the company's product offering. Will this information have a potential of changing your estimate that you provided in part e? Explain. (3 marks) h. What form of market efficiency did you incorporate in part g? Explain. (2 marks) i. If the market is strong form efficient, would your expected price estimate change? Explain (2 marks)Problem 2 (34 marks)
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