In your own words, what does the empirical evidence on block trading tell us about market efficiency? Which of the following types of information provides a likely opportunity to earn abnormal returns on the market?
a) The latest copy of a company's annual report.
b) News coming across the NYSE ticker tape that 100,000 shares of Lukens Steel Company were just traded in a single block.
c) Advance notice that the XYZ Company is going to split its common stock three for one but not increase dividend payout.
d) Advance notice that a large new issue of common stock in the ABC Company will be offered soon.