A Lady Bought 100 Shares of a Leading Diamond Mining

question 29

Multiple Choice

A lady bought 100 shares of a leading diamond mining company with an expected return of 20 percent per year.The following day the company's president announced a major new discovery in Arkansas.The stock price immediately doubled.This scenario probably best illustrates

• A)weak form EMH is not valid.
• B)semi-strong form of EMH is not valid.
• C)market prices are random.
• D)the lady was lucky.

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Definitions:

Social Circumstances

The conditions and factors that influence and shape an individual's social experiences and interactions.

Search Committee

A group of people designated to conduct the process of seeking and recommending candidates for a specific position or role.

Interview Order

The sequence in which candidates are interviewed, which can potentially influence the perception and evaluation of each candidate by the interviewer.

Mere Exposure Effect

The mental effect where individuals start favoring items simply because they have become acquainted with them.