[Solved] Sometimes One Observes That the Price of a Company's Stock

Question 66
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Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is


A)clearly inconsistent with the efficient markets hypothesis.
B)consistent with the efficient markets hypothesis if the earnings were not as high as anticipated.
C)consistent with the efficient markets hypothesis if the earnings were not as low as anticipated.
D)consistent with the efficient markets hypothesis if the favorable earnings were expected.

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