Q1. What do you understand by market efficiency? Discuss the three types of market efficiency? From the following stock returns do you think the

Q1. What do you understand by market efficiency? Discuss the three types of market efficiency? From the following stock returns do you think the market is efficient?1.On August 2005, Toll Holdings Ltd (TOL) announced that it wished to acquire more than 50% of the shares of Patrick Corporation (PRK) (i.e. it launched a ‘takeover bid’). Below are end-of-month stock-price data for TOL and PRK. The beta of Patrick Corporation is 0.91 and Toll Holdings Ltd (TOL) is 1.2 and 90-day BABs were yielding 5.65% p.a.TOLPRK ASX ACCUMULATION INDEX22,66423,41324,53425,17325,67825,678Based on your calculations:(a)Is the Market efficient?(b)Comment on the information that appears to be conveyed by the announcement.