Which of the Following Is Consistent with the Semi-Strong Form

question 25

Multiple Choice

Which of the following is consistent with the semi-strong form efficient market hypothesis?

• A)So-called value shares outperform growth shares.
• B)Shares that have performed well over the past year continue to perform well for several more months.
• C)A company announces higher than expected sales and earnings.The share price immediately increases by 10%.
• D)A company announces higher than expected sales and earnings.The share price remains unchanged.

---

Definitions:

Partnership Liquidation

The process of closing a partnership by distributing its assets to settle debts and then to the partners according to their ownership interests.

Gains and Losses

Financial terms referring to the positive or negative changes in value of investments or assets relative to their original purchase price.

Liquidation Gain/Loss

The financial result realized when the assets of a company are sold off or liquidated.