According to the efficient markets hypothesis,which of the following would increase the price of stock in the Simpson Corporation?
A)Simpson announces,just as everyone had expected,that it has hired a new highly respected CEO.
B)Simpson 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 Simpson 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 Simpson's profits are low but not as low as expected, it is better news than anticipated, potentially increasing the stock price.

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