In an efficient market: a. firms that are not followed by many analysts tend to yield...
In an efficient market:
| a. |
firms that are not followed by many analysts tend to yield higher returns |
|
| b. |
stock prices do not rapidly adjust to new information |
|
| c. |
security prices are seldom far above or below their justified level |
|
| d. |
returns tend to be positive on the last trading day before a holiday |
Homework Answers
security prices are seldom far above or below their justified level
market efficiency suggests at any given time, prices fully
reflect all available information about a particular stock and/or
market. Therefore, secuities always show their fair
value.
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three-day period rather than almost instantly. a. Would you
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