According to the Efficient Markets Hypothesis,which of the Following Would

question 251

Multiple Choice

According to the efficient markets hypothesis,which of the following would increase the price of stock in the McCloud Corporation?

• A) McCloud announces,just as everyone had expected,that it has hired a new highly respected CEO.
• B) McCloud announces that its profits were low,but not as low as the market had expected.
• C) Analysis by a column in a business weekly indicates that McCloud is overvalued.
• D) All of the above would increase the price.

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Definitions:

Genes

Units of heredity made up of DNA that influence the development and functions of an organism.

Homozygous

Referring to two genes of one pair that are exactly the same in every letter of their code. Most gene pairs are homozygous.

Heterozygous

Referring to two genes of one pair that differ in some way. Typically one allele has only a few base pairs that differ from the other member of the pair.

Chromosomes

The structures within cells that contain DNA and carry genetic information.