Question: How might the Efficient Market Hypothesis (EMH) explain the immediate fluctuation of a company's stock price following an earnings report release? EMH suggests that the

How might the Efficient Market Hypothesis (EMH) explain the immediate fluctuation of a company's stock price following an earnings report release? EMH suggests that the stock price should only respond to the earnings report if it contains unexpected information. According to EMH, stock prices should not change as all information is already priced in. According to EMH, stock prices only respond to macroeconomic news, not individual company reports. FA

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