Farfetch announces a positive surprise with respect to earnings on March 1. On that same day, the market price of Farfetch immediately increased to full reflect this new information. Is this consistent with the concept of market efficiency? Group of answer choices Yes No

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Farfetch announces a positive surprise with respect to earnings on March 1. On that same day, the market price of Farfetch immediately increased to full reflect this new information. Is this consistent with the concept of market efficiency?
Group of answer choices
Yes
No
Expert Solution
Step 1: Identify the context.

Yes, this is consistent with the concept of market efficiency. The semi-strong form of market efficiency states that all publicly available information is reflected in stock prices.


Since the earnings surprise was publicly available information, it is not surprising that the stock price of Farfetch immediately increased to reflect this new information.

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