Which of the following is NOT correct with respect to the Efficient Market Hypothesis? O If markets are semi-strong form efficient, then fundamental analysts would not be able to earn abnormally good returns, after considering the risk they assume Semi-strong form efficiency says that if a company announces a labor strike, the stock price very quickly adjusts downward. Evidence suggests that markets are NOT strong form efficient, since insiders could make abnormally good returns trading on private information. However, that is illegal. Semi-strong form efficiency says that when Stryker makes an earning announcement, the stock price quickly reflects the new information. O Weak form efficiency says that technical analysts who study charts of stock prices and volumes can regularly make abnormally good returns, after considering the risk the assume.
Which of the following is NOT correct with respect to the Efficient Market Hypothesis? O If markets are semi-strong form efficient, then fundamental analysts would not be able to earn abnormally good returns, after considering the risk they assume Semi-strong form efficiency says that if a company announces a labor strike, the stock price very quickly adjusts downward. Evidence suggests that markets are NOT strong form efficient, since insiders could make abnormally good returns trading on private information. However, that is illegal. Semi-strong form efficiency says that when Stryker makes an earning announcement, the stock price quickly reflects the new information. O Weak form efficiency says that technical analysts who study charts of stock prices and volumes can regularly make abnormally good returns, after considering the risk the assume.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following is NOT correct with respect to the Efficient Market
Hypothesis?
If markets are semi-strong form efficient, then fundamental analysts would not
be able to earn abnormally good returns, after considering the risk they assume.
O Semi-strong form efficiency says that if a company announces a labor strike, the
stock price very quickly adjusts downward.
Evidence suggests that markets are NOT strong form efficient, since insiders
could make abnormally good returns trading on private information. However,
that is illegal.
() Semi-strong form efficiency says that when Stryker makes an earning
announcement, the stock price quickly reflects the new information.
)Weak form efficiency says that technical analysts who study charts of stock
prices and volumes can regularly make abnormally good returns, after
considering the risk the assume.
Page 24 of 30
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