The below figure gives the daily price movement of Microsoft and Apple announcements in 2012 that launched the first Surface Tablet and the iPad 2, respectively. The public announcement days are identified using the vertical lines. The timeline covers about nine months prior and about one month post the public launch. Assume that no other significant value-relevant events took place during this period. At the quarter-end prior the announcements of the new tablet computers, the Price-to-Earnings (PE) ratio of Apple was 38 and the PE ratio of Microsoft was 53. At the quarter-end post the product announcement the PE ratio of Apple was 61 and the PE ratio of Microsoft was 56. 2012SurfaceiPad 291 38536156 Required: (a) Explain how an analyst following these two technology companies could estimate by how much exactly the stock price should move because of these new product announcements