Efficient Markets Hypothesis When the 56-year-old founder of the Turkish firm, Gulf Oil and Minerals, died of a heart attack, the share price immediately jumped from 18.00 Lira a share to 20.25 Lira, a 12.5 per cent increase. 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 is received and the stock market as a whole does not move.

Is this statement about market efficiency true or false? Explain.