A news story about United Airlines decision to seek protection from creditors was originally published December 10,
Question:
a. Use your knowledge of behavioral biases among investors to explain the market reaction to the incorrect news.
b. Why didn’t the share price immediately return to $12 after the truth was known?
c. Does this market behavior contradict the efficient market hypothesis?
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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