Multiple Choice
U.S. Bancorp holds a press conference to announce a positive news event that was unexpected to the market. As soon as the announcement is made, the stock price increases $8 per share but then over the next hour the price falls resulting in a net increase of only $4. Given this information which of the following statements is correct?
A) This is an example of a market overreaction.
B) This is an example of a market underreaction.
C) This is an example of a semi-strong efficient market.
D) None of these statements are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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