According to the efficient markets hypothesis,better-than-expected news about a corporation will
A) have no effect on it's stock price.
B) raise the price of the stock.
C) lower the price of the stock.
D) change the price of the stock in a random direction.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that stock prices reflect all available information. Therefore, better-than-expected news would lead to an increase in the stock price as the market adjusts to the new information.

According to the Efficient Markets Hypothesis,better-Than-Expected News About a Corporation