An article in today’s Wall Street Journal states a certain drug company has received approval from the Federal Food and Drug Administration to market a new medication for people with heart disease. You believe you should call your broker and invest in the stock of this company immediately because it will undoubtedly increase in value.

Given what you know about efficient markets, what advice do you suspect you will receive from your broker.

Answer rating: 100% (QA)

1 Exercise caution and research before investing Your broker might highlight that in an efficient market all public information is already factored in... View the full answer