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Suppose Firms with Unexpectedly High Earnings Earn Abnormally High Returns

Question 5

Multiple Choice

Suppose firms with unexpectedly high earnings earn abnormally high returns for several months after the earnings announcement.This would be evidence of:


A) efficient markets in the weak form.
B) inefficient markets in the weak form.
C) efficient markets in the semistrong form.
D) inefficient markets in the semistrong form.
E) inefficient markets in the strong form.

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