On 1st June 2023, Avicent plc announced a 4-for-1 split of its ordinary shares, upon which...

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On 1st June 2023, Avicent plc announced a 4-for-1 split of its ordinary shares, upon which the share price fell from $208 (old shares) to $60 (new shares). A. The evidence shows that there is an arbitrage opportunity, buy the shares imme- diately after the announcement and sell them shortly after the split has occurred. B. The Efficient Markets Hypothesis predicts that Avicent's share price will fall further to $52 shortly after the split has occurred. C. The evidence from Avicent's share-split shows that the market for its shares is weak form inefficient. D. The evidence shows that there is an arbitrage opportunity, short-sell the shares immediately after the announcement and terminate the short-sale (buy the shares) after the split has occurred. E. None of the above. Select one: O A. O B. O C. O D. OE. On 1st June 2023, Avicent plc announced a 4-for-1 split of its ordinary shares, upon which the share price fell from $208 (old shares) to $60 (new shares). A. The evidence shows that there is an arbitrage opportunity, buy the shares imme- diately after the announcement and sell them shortly after the split has occurred. B. The Efficient Markets Hypothesis predicts that Avicent's share price will fall further to $52 shortly after the split has occurred. C. The evidence from Avicent's share-split shows that the market for its shares is weak form inefficient. D. The evidence shows that there is an arbitrage opportunity, short-sell the shares immediately after the announcement and terminate the short-sale (buy the shares) after the split has occurred. E. None of the above. Select one: O A. O B. O C. O D. OE.

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The detailed answer for the above question is provided below The correct answer is E None of the abo... View the full answer