When the 56-year-old founder of Black and Decker, Inc., died of a heart attack, the stock price immediately jumped from $18.00 a share to $20.25, a 12.5 percent increase. One of your co-workers makes the following statement: This is evidence of market inefficiency, because an efficient stock market would have anticipated his death and adjusted the price beforehand. Assume that no other information was received the day the announcement was made and the stock market as a whole did not move. Is this statement about market efficiency true or false? True O False Question 3 8 pts You read a column in the Wall Street Journal on a company called Xterra Corporation. The news article indicates that Xterra has discovered a cure for Hepatitis A that represents a major breakthrough in medical treatment and should produce massive profits for the company in the future. Your thoughts are that you should buy some shares of Xterra so you can capture any adjustments in the price due to the information that appears in the news article. If the stock market is highly efficient, can you expect to capture such gains in the price? O No Yes