Which of the following would violate the efficient market hypothesis?
A) Intel has consistently generated large profits for years.
B) Prices for stocks before stock splits show on average consistently positive abnormal returns.
C) Earning abnormal returns after a firm announces surprise earnings.
D) High earnings growth stocks fail to generate higher returns for investors than low earnings growth stocks.

Question

Quizplus · Accepted Answer

The Answer of Which of the following would violate the efficient market hypothesis?
A) Intel has consistently generated large profits for years.
B) Prices for stocks before stock splits show on average consistently positive abnormal returns.
C) Earning abnormal returns after a firm announces surprise earnings.
D) High earnings growth stocks fail to generate higher returns for investors than low earnings growth stocks.

Which of the Following Would Violate the Efficient Market Hypothesis