On the 19thof November, the company announcedthe news of an approved license for several US states, leading to an upwardprojection 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 19thof 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)