Assume that the price of a stock remains constant from time period 0 to time period 1,
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Assume that the price of a stock remains constant from time period 0 to time period 1, at which time a significant piece of information about the stock becomes available. Draw a diagram that depicts the situation if (a) the market is semi-strong efficient and (b) there is a lag in the adjustment of the price to this information.
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If the market is semi strong efficient you would expect to see an immediate adjustment at ...View the full answer
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