Efficient Markets $($Answer all parts of this question.$)$

On $9$th May $2017$ Micro Focus, the UK technology company, announced a profit

warning in its target acquisition from Hewlett Packard. The chart below shows that

initially Micro Focus fell $13\%,$ before closing down $6\mathrm{.}1\%.$

Source: Telegraph

$($a$)(10$P$.)$ Discuss the above chart within the framework of the different forms of

the Efficient Market Hypothesis.

$($b$)(10$P$.)$ Explain the advantages of the using the Single Index Model over using

Markowitz Portfolio Theory when investing in a broad market; illustrate your

answer with examples.