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Please answer and explain 6. Geothermal corporation issued a press release before the stock market opened announcing that its earnings set a record for the
Please answer and explain
6. Geothermal corporation issued a press release before the stock market opened announcing that its earnings set a record for the biggest loss the company every had. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market efficiency. (a) When trading opened after the announcement, the stock price quickly increased by 10%. (b) The stock price of Geothermal decreased slowly over the 30 days before the announcement (c) The stock price decreased by 10% immediately following the announcement but then increased throughout the day so that the closing price was only 2% below the previous day. (d) The stock price of Geothermal did not change after the announcement was made publicStep by Step Solution
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