Suppose that Google announces that its profits for the third quarter of 2013 were $1.6 billion. As a result of this announcement the price of Google's stock declines. The best explanation of this is
A) market participants expected Google's profits to be greater than $1.6 billion for the third quarter.
B) market participants expected Google's profits to be less than $1.6 billion for the third quarter.
C) the stock market is not an efficient market.
D) market participants have adaptive expectations.
Correct Answer:
Verified
Q48: One implication of the efficient markets hypothesis
Q61: According to the efficient markets hypothesis,the difference
Q64: Suppose that research shows that by buying
Q74: Under the efficient markets hypothesis,for news about
Q76: Technical Analysis is a version of:
A)insider trading
B)adaptive
Q79: Which type of stock should result in
Q82: Noise traders
A)pursue trading strategies based on inflated
Q84: In a competition of financial analysts vs.
Q85: Which of the following is an example
Q113: Behavioral economics can best be described as
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents