Kiera Jones bought 100 shares of XLNX at $4.00 per share. One year later the share price of XLNX was $10.00 per share. During this period the S&P/TSX went from 8,000 to 12,000, the NASDAQ went from 1,600 to 2,400, the Dow-Jones Industrial average went from 6,000 to 11,000 and the S&P 500 went from 750 to 1,300. Which of the following statements best describes this market action?

Question

Quizplus · Accepted Answer

The significant increase in the share price of XLNX, alongside substantial increases in major market indexes, suggests that the market may not have accurately priced XLNX a year ago, indicating market inefficiency rather than a specific form of market efficiency (weak, semi-strong, or strong) mispricing the stock.

Kiera Jones Bought 100 Shares of XLNX at $4