mcq
Posted: Thu Apr 28, 2022 12:33 pm
mcq
9. Assume that a company announces an unexpectedly negative news to its investors. In an efficient market without information leakage, one might expect: A. An abnormal price increase before the announcement. B. An abnormal price decrease after the announcement. C. No abnormal price change before or after the announcement. D. No abnormal price change at the announcement. E. An abnormal price change at the announcement. 10. According to the efficient market hypothesis: A. Mispricing on stocks will disappear quickly B. Low-beta stocks are consistently overpriced C. Small size stocks are consistently overpriced D. High value stocks are consistently underpriced
9. Assume that a company announces an unexpectedly negative news to its investors. In an efficient market without information leakage, one might expect: A. An abnormal price increase before the announcement. B. An abnormal price decrease after the announcement. C. No abnormal price change before or after the announcement. D. No abnormal price change at the announcement. E. An abnormal price change at the announcement. 10. According to the efficient market hypothesis: A. Mispricing on stocks will disappear quickly B. Low-beta stocks are consistently overpriced C. Small size stocks are consistently overpriced D. High value stocks are consistently underpriced