Under the Efficient Markets Hypothesis,for News About a Company's Prospects

question 8

Multiple Choice

Under the efficient markets hypothesis,for news about a company's prospects to have a large impact on the price of the company's stock,the news must

• A) have an impact on the company's profitability in the short term.
• B) have an impact on the company's profitability in the long term.
• C) significantly increase the likelihood that the company will go bankrupt.
• D) significantly reduce the liquidity of the company's stock.