On May 12, 2001 the WWF Announced the Demise of the XFL

question 26

Multiple Choice

On May 12, 2001 the WWF announced the demise of the XFL. The WWF stock price jumped up significantly on the day.

• A) These results are consistent with strong from efficiency because insiders knew the league would fold.
• B) These results are consistent with semi-strong form efficiency as the demise would reverse the negative cashflow.
• C) These results are inconsistent with weak form efficiency because past price behavior predicted the collapse.
• D) These results are inconsistent with all forms of market efficiency because a failure is a negative event.
• E) These results are consistent with all forms of market efficiency as all information is known and priced in.

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Definitions:

Development Change

The process of growth or decline in physical, cognitive, social, and emotional capacities over time.

Content Validity

The extent to which a test measures all aspects of the concept or content it's intended to cover.

Establishing Evidence

The process of gathering and presenting data or facts to support or prove a point, hypothesis, or legal case.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.