(red line=RSA share price, blue line=FTSE 100)

The record of share price, financial sector index, and the 100 index FTSE.

Day Date Open High Low Close Volume

Friday Jan 14 133.30 134.20 131.33 133.90 6,597,002

Thursday Jan 13 134.70 135.20 133.50 133.60 11,331,793

Wednesday Jan 12 132.50 134.15 132.10 134.00 8,716,307

Tuesday Jan 11 130.70 133.40 130.00 132.10 10,215,366

Monday Jan 10 131.40 131.40 129.70 130.00 4,731,503

Friday Dec 17 126.60 126.90 123.60 124.10 19,257,527

Thursday Dec 16 126.50 126.80 125.60 126.00 5,404,285

Wednesday Dec 15 127.10 127.60 126.10 126.10 4,875,543

Tuesday Dec 14 127.60 127.80 126.20 127.60 6,033,686

Monday Dec 13 127.10 128.00 126.50 127.50 6,228,171

Friday Nov 19 127.10 127.10 125.80 126.50 5,719,949

Thursday Nov 18 125.60 128.10 125.55 126.90 8,863,138

Wednesday Nov 17 125.90 126.50 125.20 125.40 10,279,351

Tuesday Nov 16 126.80 127.20 125.50 126.20 7,310,693

Monday Nov 15 126.60 127.10 125.40 126.90 7,763,279

Day DATE OPEN HIGH LOW COLSE

Friday Jan 14 2,946.88 2,946.88 2,946.88 2,946.88

Thursday Jan 13 2,942.93 2,942.93 2,942.93 2,942.93

Wednesday Jan 12 2,969.64 2,969.64 2,969.64 2,969.64

Tuesday Jan 11 2,895.81 2,895.81 2,895.81 2,895.81

Monday Jan 10 2,842.69 2,842.69 2,842.69 2,842.69

Friday Dec 17 2,728.07 2,728.07 2,728.07 2,728.07

Thursday Dec 16 2,767.42 2,767.42 2,767.42 2,767.42

Wednesday Dec 15 2,739.53 2,739.53 2,739.53 2,739.53

Tuesday Dec 14 2,786.82 2,786.82 2,786.82 2,786.82

Monday Dec 13 2,794.92 2,794.92 2,794.92 2,794.92

Friday Nov 19 2,735.96 2,735.96 2,735.96 2,735.96

Thursday Nov 18 2,784.29 2,784.29 2,784.29 2,784.29

Wednesday Nov 17 2,751.85 2,751.85 2,751.85 2,751.85

Tuesday Nov 16 2,749.50 2,749.50 2,749.50 2,749.50

Monday Nov 15 2,853.07 2,853.07 2,853.07 2,853.07

 Day Date Open High Low Close Volume

Friday Jan 14 6,023.88 6,031.74 5,948.47 6,002.07 852,945,529

Thursday Jan 13 6,050.72 6,055.47 6,005.51 6,023.88 921,442,483

Wednesday Jan 12 6,014.03 6,050.72 6,013.87 6,050.72 1,021,020,709

Tuesday Jan 11 5,956.30 6,035.89 5,956.30 6,014.03 861,069,260

Monday Jan 10 5,984.33 5,984.33 5,939.89 5,956.30 662,690,951

Friday Dec 17 5,881.12 5,902.53 5,857.33 5,871.75 1,431,434,267

Thursday Dec 16 5,882.18 5,907.10 5,862.86 5,881.12 635,565,859

Wednesday Dec 15 5,891.21 5,898.04 5,858.11 5,882.18 781,046,515

Tuesday Dec 14 5,860.75 5,891.21 5,847.15 5,891.21 665,056,270

Monday Dec 13 5,812.95 5,873.71 5,812.94 5,860.75 562,916,530

Friday Nov 19 5,768.71 5,774.07 5,684.49 5,732.83 732,494,008

Thursday Nov 18 5,692.56 5,782.98 5,692.56 5,768.71 729,396,152

Wednesday Nov 17 5,681.90 5,704.39 5,659.65 5,692.56 761,486,020

Tuesday Nov 16 5,820.41 5,820.43 5,680.87 5,681.90 871,717,162

Monday Nov 15 5,796.87 5,832.88 5,755.68 5,820.41 620,872,880

First of all, we need to briefly understand what market efficiency means, (old book) states that
‘When security prices at all times rationally reflect all available, relevant information, the market
in which they are traded is said to be efficient’ this implies that market price of the security
should reflect any past and new information. By the same token, In terms of size and direction of
security price movement should be reflect quickly and rationally. Since there are large numbers
of informed, knowledgeable, and highly motivated observers who are capable of quick action, we
are worthily to believe that the price changes to new information should be quickly and
accurately in order to create financial gain. That the reason why should capital markets be
efficient. Indeed, efficient capital market expect to fulfill operational efficiency, pricing efficiency
and allocational(这个词没有拼写错误，看完去掉) efficiency.
According to the speed and the quality of the price adjustment to new information, the market
efficiency divided into three different levels.
Week form efficiency: the information that might be contained in past price movements is
already reflected in the securities’ price.
Semi-strong form. All relevant publicly available information is impounded in security prices.
Strong form. If present this would mean that all relevant information, including that which is
available only to those in privileged positions (e.g. managers), is fully reflected in security prices.

As the graph shown above, when the value of FTSE 100 decreased, RSA insurance Group’s share price
decreased as well as the value of nonlife insurance industry(I sub-sector of financial sector). It is indicated that the
whole capital market is influenced by the new information i.e. if the information is positive, the share price will
increase. For example, as the news provide by financial time and RSA company website, i n accordance with
the terms of the Scrip Dividend Scheme, the Company will issue 38,463,140 ordinary shares of
27.5p each to shareholders who have elected to receive new ordinary shares instead of a cash
dividend, for the 2010 interim dividend. This news in publish on 23 November 2010, the share
price was increasing immediately because of the good news. On 25 November 2010, announced
the appointment of Mike Holliday-Williams as CEO of RSA Scandinavia.

Mike will be responsible for RSA’s Scandinavian business, which

includes operations in Denmark, Sweden, Norway and Finland and the
Codan and Trygg Hansa brands. The share price also change reflect for
this news.

Nowadays, the share price of a company fairly and fully reflects its true value and market
expectations about its future performance and returns. As a financial manager focus on maximize
shareholders’ wealth, the company’s policy and decision provided by manager would influence
the market price, according to this, the capital market would interpret these decisions in good or
not and the share price will adjust reasonable. Indeed, managers may difficult to fool the
investors because these skilled investor could analysis all past and present public information.
According to these, by reference the data I gathered, the results reflect the semi-strong form
market, because all relevant publicly available information is impounded in security