13.5 When the 56-year-old founder of Gulf & Western, Inc., died of a heart attack, the stock...

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13.5 When the 56-year-old founder of Gulf & Western, Inc., died of a heart attack, the stock price jumped from $18.00 a share to $20.25, a 12.5-percent increase. This is evidence of market inefficiency, because an efficient stock market would have anticipated his death and adjusted the price beforehand. Is this statement true or false? Explain.

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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