The figure shows the cumulative abnormal return plotted against the days to a merger announcement. State whether each of the three forms of the Efficient Market Hypothesis are supported by or can be rejected by the figure, and explain your answer:

(a) Weak form

(b) Semi-strong form

(c) Strong form

Consider the following figure: 36 32 28 24 20 16 12 Cumulative Abnormal Return (%) 8 4 1 -8 -12 -16 -135-120 -105 -90-75 -60 -45 -30 -15 0 Days Relative to Announcement Date 15 30 FIGURE 11.1 Cumulative abnormal returns before take- over attempts: Target companies Source: Arthur Keown and John Pinkerton, "Merger Announcements and Insider Trading Activity," Journal of Finance 36 (September 1981). Reprinted by permission of the publisher, Blackwell Publishing, Inc