17. (Market efficiency reaction to news) The DEF company recruited one of the best CEOs in the...

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17. (Market efficiency— reaction to news) The “DEF” company recruited one of the best CEOs in the country to its service in an unanticipated move.

However, the price of the “DEF” stocks fell once the company announced the change in management. Assuming that the new CEO was the only new information about the company (and that he is indeed better than the old CEO), does the fall of stock prices indicate market inefficiency?

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