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Category > Business & Finance Posted 15 Jul 2017 My Price 9.00

1. Suppose the market is semistrong-form

1. Suppose the market is semistrong-form efficient. Can you expect to earn excess returns if you make trades based on:

a. Your broker’s information about record earnings for a stock?

b. Rumors about a merger of a firm?

c. Yesterday’s announcement of a successful test of a new product?

2. Consider an efficient capital market in which a particular macroeconomic variable that influences your firm’s net earnings is positively serially correlated. Would you expect price changes in your stock to be serially correlated? Why or why not?

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Status NEW Posted 15 Jul 2017 09:07 AM My Price 9.00

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