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question 4

Essay

Use the information for the question(s)below.
In a surprise announcement,NASA released details of a major contract with Lockheed-Martin (LMT)that would increase LMT's market value by $7.5 billion.It was widely expected by the market that this contract would be awarded to LMT's major competitor Boeing (BA).Assume that Boeing has 800 million shares outstanding and Lockheed Martin has 425 million shares outstanding.Prior to this announcement,the market felt that the probability of Boeing winning the contract was 90% and that Lockheed-Martin's chance was only about 10%.
-What are the implications of the efficient markets hypothesis for corporate managers?

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Laws and regulations passed by governing bodies that impact how businesses and individuals operate within society.

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The overall conditions and environment that affect the satisfaction and productivity of employees.

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A social movement that began in 2011, aimed at highlighting economic inequality and the influence of corporate money in U.S. politics.

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