A. Semi-strong form of market efficiency requires that the price does not drift prior to the announcement.
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Question:
A. Semi-strong form of market efficiency requires that the price does not drift prior to the announcement.
B. Strong form of market efficiency implies that one cannot forecast where the price will end up after the announcement.
C. Under semi-strong form of market efficiency, it is possible that taking a position in the target stock before the announcement generates abnormal risk-adjusted returns.
D. This violates the weak form of market efficiency, because the stock reaction to the announcement is positive on average.
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1305575080
23rd edition
Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene
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