If Markets Are Strong-Form Efficient,then Event Studies Should Show That

question 6

Multiple Choice

If markets are strong-form efficient,then event studies should show that new information affects a related stock's price

• A)for a single day.
• B)only when the new information relates to a dividend payment.
• C)over a range of days with the overreactions exactly offsetting the underreactions.
• D)only if the information is company specific.
• E)by a very minimal amount,if any.

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Definitions:

Time Pressure

Time Pressure refers to the stress or urgency to complete tasks within a limited timeframe, often leading to hurried actions or decisions.

Presenteeism

Attending work when ill.

Burnout

A psychological state resulting from prolonged exposure to stressful work situations, leading to emotional exhaustion, depersonalization, and reduced personal accomplishment.

Autonomy

The degree of freedom and independence an individual or team has in making decisions and controlling their work environment.