Read the following statements. For each statement, first state whether it is true or false. Then explain your reasoning.

a. XYZ reported a profit of $270 million for 2020. At the same time, their share price dropped by 10% in the same year. The fact that the stock market reacted negatively to positive earnings suggests that it is not informationally efficient.

b. Your friend Jonny made a total return of 100% in 2020 by investing in GameStop, beating the market return by a big margin. In the same year, your friend Sammy made a total return of 5% by investing in government bonds, much lower than the market return in 2020. Given that Jonny outperformed Sammy substantially, Jonny must be a better investor

c. Managers make superior returns on their purchases of their companys stock. This violates the strong form of market efficiency.

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