On Monday 2 Aug 2021, Afterpay and Square announced that Square has agreed to acquire all of the issued shares in Afterpay. Afterpay [ASX:APT] is a public company with stocks listed on the Australian Securities Exchange. You are provided with the following information about Afterpay and ASX200 index (a proxy for the market portfolio). Assume the daily risk-free rate is 0 and the CAPM holds.

Date	Afterpay	ASX200
Closing price, Friday 30 July 21	$96.99	7392.62
Closing price, Monday 2 August 21	$114.8	7491.45
Number of outstanding shares	290.3 million shares
Stock beta	1.58	1

Required: [Note: for a and b, show your working. Do not round intermediate answers and round your final answers to two decimal places, e.g., 1.01%, $0.01 million. For c, no calculation is required.]

c.Using market efficiency theory, in one or two sentences to discuss how information about company news is translated into stock prices.