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.

Grasp the concept of absolute and relative references in formulas and named ranges.

Recognize the significance of workbook and worksheet protection options for data security.

Know how to manage user interface configurations and user account settings.

Understand the use of comments, notes, and track changes to collaborate on Excel workbooks.

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Definitions:

Operating Hours

The scheduled time during which a business or service is open to customers or operations are conducted.

Straight-Line Method

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each year of the asset's useful life.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Depreciation

is an accounting method that allocates the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.