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W Answer ALL questions. QUESTION 1 (a) What do you understand about efcient market hypothesis (EMH)? According to EMH, how news affect stock prices? (4 marks) (b) AEON retail (Malaysia) offered rental waiver to qualied tenants throughout the partial lockdown or Movement Control Order (MCO) period. The offer is given to non- essential businesses that are unable to operate during this period. Therefore, the investors expect AEON will lose $1.00 a share this year. The company has just announced that it registered a negative prot of $0.50 per share this year, the largest loss in the history of the company. Briey discuss what does the EMH say will happen to the price of the stock when the $0.50 loss is announced? (4 marks) TIQN 2 (a) Supposed that an investor in the 35 percent tax bracket is trying to decide which of the two bonds to purchase. One is a corporate bond carrying an 8 percent coupon and selling at par. The other is a municipal bond with a 6 percent coupon, and it, too sells at par. Assuming all other relevant factors are equal, which bond should the investor select? Please provide your calculation to support your answer. (4 marks) (b) Your non-economist friend would like to know more about corporate bond. Briey explain to him the differences between a general obligation bond and a revenue bond? (8 marks) QHESTIQN Q The table below is a list of bids for the $23 billion Treasury bills being issued- The bids include the total amount the bidder is willing to purchase as well as the maximum price the bidder would pay based on a $100 par value note. Bid 1: $5 billion, (non competitive) Bid 2: $10 billion, (non competitive) Bid 3: $5 billion, max price: $98 Bid 4: $5 billion, max price: $95 Bid 5: $10 billion, max price: $92 Bid 6: $5 billion, max price: $90 Briey discuss who will receive Treasury bills, in what quantity and at what price? (6 marks)