FIN 424 [ABBAS FAISAL ALMOMEN TEL: 33332031] 30. Aerotech, an aerospace technology research firm, announced this morning that it hired the world's most knowledgeable and prolific space researchers. Before today, Aerotech's stock had been selling for $100, Assume that no other information is received over the next week and the stock market as a whole does not move. a. What do you expect will happen to Aerotech's stock? b. Consider the following scenarios: 1. The stock price jumps to $118 on the day of the announcement. In subsequent days it floats up to $123, then falls back to $116. ii. The stock price jumps to $116 and remains at that level. il. The stock price gradually climbs to $116 over the next week. Which scenario(s) indicate market efficiency? Which do not? Why? ritur in furmation 34 D HIERON