Suppose That fiRms with Unexpectedly High Earnings Earn Abnormally High

question 6

Multiple Choice

Suppose that firms with unexpectedly high earnings earn abnormally high returns for several months after the announcement.This would be evidence of:

• A)efficient markets in the weak form.
• B)inefficient markets in the weak form.
• C)efficient markets in the semistrong form.
• D)inefficient markets in the semistrong form.
• E)inefficient markets in the strong form.

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Definitions:

Mental Abilities

The cognitive capacities and skills that enable an individual to process information, solve problems, and understand complex ideas.

Dementia

A progressive deterioration in mental abilities due to changes in the brain that influence higher cortical functions such as thinking, memory, comprehension, and emotional control and are reflected in impaired thought and behavior, interfering with the older adult’s ability to engage in everyday activities.

Geographic Differences

Variations in cultural, environmental, economic, and social characteristics across different regions or territories.

Dementia Rates

The incidence or prevalence of dementia in a population, indicating how common the condition is within a specific demographic or over time.