Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings.
Question:
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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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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