QUESTION 2 The CEO of New Energy Inc. just announced that the firm has received a patent for a product that will convert household garbage into usable fuel without creating any hazardous waste. This news is totally a surprise and seen as a major technological advancement. Which one of the following reactions to this development best indicates an efficient market? The price of New Energy Inc. stock increases rapidly and then settles back to its original value. The price of New Energy Inc. stock increases rapidly and then levels off at the higher value. O All stocks quickly increase in value and then all but New Energy Inc. stock fall back to their original values. The price of New Energy Inc. stock remains unchanged. QUESTION 3 Your portfolio has provided you with returns of 3 percent, 11 percent. -13 percent, and 14 percent over the past four years, respectively. What is the geometric average return for this period? 3.19 percent O 5.27 percent O 10.16 percent 7.12 percent