According to the efficient markets hypothesis, which of the following would increase the price of stock in the Gerhardt Corporation?
A)Gerhardt announces, just as everyone had expected, that it has hired a new highly respected CEO.
B)Gerhardt 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 Gerhardt 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 Gerhardt's profits were not as low as expected, it would be positive news, leading to an increase in stock price.

According to the Efficient Markets Hypothesis, Which of the Following