Which one of the following is NOT an example of market efficiency?
A)Stock price changes after earning announcements.
B)Stock price decreases every third day by 0.5% from the opening price.
C)Stock price has a beta of 1.
D)Stock price decreases when the market goes up.

Question

Quizplus · Accepted Answer

Market efficiency implies that stock prices reflect all available information, and thus, any consistently predictable pattern in stock price changes (such as a predictable decline every third day) would contradict the notion of market efficiency. Choices A, C, and D are all consistent with market efficiency.

Which One of the Following Is NOT an Example of Market