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Which of following would allow a stock analyst to earn an abnormal return if the market is weak form efficient? (Just select a, b, c,
- Which of following would allow a stock analyst to earn an abnormal return if the market is weak form efficient?
(Just select a, b, c, or d for the two scenarios above; however, there may be more than 1 answer for each scenarios)
- The stock price has risen steadily each day for the past 30 days.
- The financial statements for a company were released three days ago, and you believe youve uncovered some anomalies in the companys inventory and cost control reporting techniques that are understating the firms true liquidity strength.
- You observe that the senior management of a company has been buying a lot of the companys stock on the open market over the past week.
- Your next-door neighbor, who happens to be a computer analyst at the local steel plant, casually mentions that a German steel conglomerate hinted yesterday that it might try to acquire the local firm in a hostile takeover.
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