The answers are based on Huberman and Regev, 2001, Contagious speculation and a cure for cancer: A nonevent that made stock prices soar. Please read the whole paper. It is only 10 pages.

I. Does this paper present empirical evidence consistent with or contradictory to efficient market hypothesis?

II. The paper examines the stock return behavior of the implicated stock (Entremed) and the stock returns of the companys partners and Nasdaq Combined Biotechnology Index. Which part of the analyses provides evaluation of efficient market hypothesis?