Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings.

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Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is
a) Clearly inconsistent with the efficient market hypothesis.
b) Consistent with the efficient market hypothesis if the earnings were not as high as anticipated.
c) Consistent with the efficient market hypothesis if the earnings were not as low as anticipated.
d) The result of none of the above.
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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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