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If your company suddenly reports earnings growth of 30% over the past year when investors were expecting 40% growth in earnings, explain whether your stock
If your company suddenly reports earnings growth of 30% over the past year when investors were expecting 40% growth in earnings, explain whether your stock can be expected to go up or down on the news in an efficient market.
(problem above)
(my thoughts below)
According to the efficient market hypothesis, wouldn't the stock price indicate all public information in the market? how would I know whether the stock goes up or down?
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