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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