A Company Reports Significantly Higher Earnings on a Monday

question 19

Multiple Choice

A company reports significantly higher earnings on a Monday.You purchase the stock on Tuesday and earn superior returns in the absence of other new information.The market appears to be:

• A) weak-form efficient at best.
• B) weak-form efficient at the least.
• C) semistrong-form efficient at best.
• D) strong-form efficient at the least.

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Definitions:

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire to maintain positive social relations.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a strong sense of duty.

Unconscious Processes

Mental activities below the level of conscious awareness that influence thoughts, feelings, and behaviors.

Stable

Characterized by the quality of being consistent, unchanging, and free from sudden alterations or volatility.