  The magnetic circular dichroism of III-V diluted magnetic semiconductors,
calculated within a theoretical framework suitable for highly disordered
materials, is shown to be dominated by optical transitions between the bulk
bands and an impurity band formed from magnetic dopant states. The theoretical
framework incorporates real-space Green's functions to properly incorporate
spatial correlations in the disordered conduction band and valence band
electronic structure, and includes extended and localized electronic states on
an equal basis. Our findings reconcile unusual trends in the experimental
magnetic circular dichroism in III-V DMSs with the antiferromagnetic p-d
exchange interaction between a magnetic dopant spin and its host.
