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On Dec. 7, 2016 Buzzfeed published an investigation of UHS, an operator of psychiatric hospitals, which was the first to publicly report the company was
On Dec. 7, 2016 Buzzfeed published an investigation of UHS, an operator of psychiatric hospitals, which was the first to publicly report the company was under investigation for Medicare fraud. After the report was published, the company lost $1.5 billion in value as the stock price dropped: If markets are efficient, should we expect a further drop in the stock price, assuming no new news is reported? In your answer, please discuss the difference between the strong form and the weak form of the efficient market hypothesis.
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