Question: This is a bonus question with 5 points. For grading purposes, the CANVAS system displays it as a zero- point question. Your grade for this

This is a bonus question with 5 points. For grading purposes, the CANVAS system displays it as a zero- point question. Your grade for this bonus question will be added on top of your existing grade. In other words, you can earn up to 105 points in this exam. Suppose the CEO of a large pharmaceutical company buys a massive amount of stocks using his personal account before the company announces a breakthrough in the development of the COVID vaccine. The stock price rises dramatically following the new announcement, and the CEO earns millions of dollars from this transaction. Answer the following questions. Briefly describe the efficient market hypothesis. Does this fact mean that the stock market is not efficient? Please explain your reason. There is a widely available online database that records every CEO's stock transactions of their own company. In an efficient market, do you expect to earn an abnormal profit using patterns you discover from the CEO's trades? Please explain your reason. This is a bonus question with 5 points. For grading purposes, the CANVAS system displays it as a zero- point question. Your grade for this bonus question will be added on top of your existing grade. In other words, you can earn up to 105 points in this exam. Suppose the CEO of a large pharmaceutical company buys a massive amount of stocks using his personal account before the company announces a breakthrough in the development of the COVID vaccine. The stock price rises dramatically following the new announcement, and the CEO earns millions of dollars from this transaction. Answer the following questions. Briefly describe the efficient market hypothesis. Does this fact mean that the stock market is not efficient? Please explain your reason. There is a widely available online database that records every CEO's stock transactions of their own company. In an efficient market, do you expect to earn an abnormal profit using patterns you discover from the CEO's trades? Please explain your reason

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