Question 1: We have gone through this graph during one of our recorded lectures and live sessions. This shows that the volatility increases in the US stock market (SP500) at the time of interest rates announcements by Federal Open Market Committee (FOMC). Note: The X-axis of the graph show time of the interest rates announcement and y-axis show the level of volatility i) Is this huge jump in the volatility of the stock market index related to market efficiency? If yes, what form of market efficiency is it related to? Please briefly motivate your answer. (2 marks) ii) Why interest rate movements affect the market prices of securities ((1 mark)