Which of the following would tend to weaken the Semi-Strong Efficient Market Hypothesis?
A)There is publicly available information that Boeing Aircraft has procured a contract to build 25 planes for the Royal Australian Air Force and the price of Boeing quickly goes up.
B)ACG,Inc.performed well for the past six months;they just lost a major distribution contract,but the price of ACG stock continues to go up with the market.
C)Woolworth announces higher sales turnover this quarter,and the share price remains stable.
D)Every time Muguet Company announces higher than expected earnings the stock continues to drift upward for several weeks.

Question

Quizplus · Accepted Answer

The Semi-Strong Efficient Market Hypothesis assumes that all publicly available information is reflected in the market prices immediately. However, in option D, Muguet Company's stock continues to drift upward for several weeks after announcing higher than expected earnings, which suggests that the market did not immediately incorporate this information into the stock price, thus weakening the hypothesis.

Which of the Following Would Tend to Weaken the Semi-Strong