given

NETFLIX. FORWARD IND.

	average returns	3.54%		average returns 2.20%
	Geometric average returns	3.09%		Geometric average returns	0.79%
	Variance	0.010		Variance	0.036
	Standard deviation	9.96%		Standard deviation	19.08%

1. What indicators can you find where the two stocks are in the efficient market hypothesiss strong, semi-strong or weak? Chart one news event for each company and indicate what the market reaction was to this news. Discuss!
2. Reading a report conducted on Netflix by a third party, you find the expected monthly average return and standard deviations are 4.3% and 8.8%, respectively. Assuming that the monthly returns are normally distributed, calculate the probabilities of the following events:
   1. The return will be lower than -5%.
   2. The return will be higher than 18%.
   3. What range of return would you expect to see 68% of the time?