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
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
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
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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