Question Help Which of the following is consistent with the efficient market hyp

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Question Help Which of the following is consistent with the efficient market hypothesis? 0 A, a company announces higher than expected sales and earnings. The stock price O B. so-called value stocks outperform growth stocks. remains unchanged Classes Classe Oc. stocks that have performed wel over the past year continue to perform well for several more months. -O D, a company announces higher than expected sales and earnings. The stock price for classes immediately increases by 10%. nd siness Ad Subj Crs MBA 540 Click to select your answer d to Work Stuaent uerar s

Explanation / Answer

Answer a) A company announces higher than expected sales and earnings.The stock price remains unchanged.

This is because as per the efficient market hypothesis, the stock price already reflects the higher than expected sales and earnings.All information is freely available.

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