(Market efficiencyreaction to news) Due to the unexpected positive earnings report, the price of GLZ shares rose...

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(Market efficiency—reaction to news) “Due to the unexpected positive earnings report, the price of GLZ shares rose on each trading day in the past week.”

a. Explain why this sentence contradicts market efficiency.

b. What type of market efficiency does the sentence contradict? Try to distinguish between two possibilities.

c. What should have been the market response if market efficiency holds?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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Question Posted: Jun 10, 2024 02:01 AM

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(Market efficiencyreaction to news) Due to the unexpected positive earnings report, the price of GLZ shares rose...

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Principles Of Finance Wtih Excel

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