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:

Fixed Mindset

The belief that one's abilities and intelligence are static and unchangeable traits.

Career Goals

Objectives that an individual sets for their professional path, often involving steps to achieve specific job positions or accomplishments.

Romantic Relationship

A partnership between two individuals characterized by emotional and often sexual intimacy.

Economic Status

A measure of a person's or a family's financial and social position relative to others, based on income, education, and occupation.