Boom Ltd made an announcement at the beginning of the week concerning the discovery of a new oil well that is expected to double its production well into the next decade.The announcement was completely unexpected,and shares of Boom Ltd had been trading at a frantic pace since the announcement.At the beginning of the week the share price was 25 cents,by mid-week 37 cents and by the end of the week 50 cents.The market for Boom Ltd shares appears to be an example of:

Question

Quizplus · Accepted Answer

The market is inefficient because the share price gradually increased over the week instead of adjusting immediately to the new information about the oil well discovery.

Boom Ltd Made an Announcement at the Beginning of the Week