Question: A stock provides very high returns. Is this an instance of the market acting inefficiently? A. Yes, inefficiencies such as this may also occur when

A stock provides very high returns. Is this an instance of the market acting inefficiently? A. Yes, inefficiencies such as this may also occur when there are periods of very high losses. B. Yes, if information was available after the stock price increases. C. No, unless information that was available to investors should have justified higher valuations of those stocks before their prices increased. D. No, the current market is always efficient.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!