On the 19th of November, the company announced the news of an approved license for several US states, leading to an upward projection of forecast earnings in the coming years. The announcement was a complete surprise, and known only to the governors of the relevant States.

What kind of market efficiency does this represent? (1 mark)

Draw a graph with Cumulative Abnormal Return (CAR) on the vertical axis, and days relative to the 19th of November on the horizontal axis which would reflect such an information environment, assuming the total impact of the announcement should be a 25% increase in fair value. (1 mark)