In an efficient market which of the following would not be expected to cause a quick price change in the stock of a company?
A) an unexpected announcement by a major competitor
B) higher than predicted earnings announcement
C) unexpected death of CEO
D) all the above would be expected to cause a quick price change

Question

Quizplus · Accepted Answer

In an efficient market, all new information is quickly incorporated into stock prices. Therefore, an unexpected announcement by a major competitor, higher than predicted earnings, and the unexpected death of a CEO would all be expected to cause a quick price change as they represent significant new information about the company's current or future performance.

In an Efficient Market Which of the Following Would Not