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A Study of the Returns of Firms That Report Unexpectedly

Question 50

Multiple Choice

A study of the returns of firms that report unexpectedly high quarterly earnings indicates that


A) an investor can benefit by purchasing the stock up to 60 days after the announcement.
B) the market is semi-strong efficient.
C) the stock's price completely adjusts within one day of the announcement.
D) an investor must have insider information to profit.

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