Which of the Following Would Violate the Efficient Market Hypothesis

question 17

Multiple Choice

Which of the following would violate the efficient market hypothesis?

• A) Intel has consistently generated large profits for years.
• B) Prices for stocks before stock splits show on average consistently positive abnormal returns.
• C) Earning abnormal returns after a firm announces surprise earnings.
• D) High earnings growth stocks fail to generate higher returns for investors than low earnings growth stocks.

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Definitions:

Personality Changes

Alterations in an individual's characteristic patterns of thinking, feeling, and behaving, potentially due to various factors.

Adolescence

The developmental stage between childhood and adulthood characterized by physical, psychological, and social changes.

Early Adulthood

A life stage characterized by new challenges and responsibilities, typically ranging from ages 20 to 40.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.