Suppose That Firms with Unexpectedly High Earnings Earn Abnormally High

question 22

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:

Offer Sympathy

The act of expressing understanding, compassion, or sorrow for another's situation or feelings, aiming to provide comfort.

Listening Styles

The preferred ways individuals pay attention to and process spoken information and communication.

Hearing

Physiological process of decoding sounds.

Listening

The active process of receiving, interpreting, and reacting to verbal and nonverbal messages from others.