According to the efficient markets hypothesis,which of the following would increase the price of stock in the McCloud Corporation?
A) McCloud announces,just as everyone had expected,that it has hired a new highly respected CEO.
B) McCloud announces that its profits were low,but not as low as the market had expected.
C) Analysis by a column in a business weekly indicates that McCloud is overvalued.
D) All of the above would increase the price.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that stock prices reflect all available information. If McCloud's profits are higher than expected, even if low, it would be new positive information, potentially increasing the stock price.

According to the Efficient Markets Hypothesis,which of the Following Would