CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

In studying the impact of dividend omissions announcements on daily stock prices, Szewczyk, Tstetsekos, and Zantout found that the significant changes in price occurred on the same day.

A. These results are consistent with strong-form efficiency.
B. These results are consistent with semi-strong-form efficiency.
C. These results are inconsistent with weak-form efficiency.
D. These results are inconsistent with all forms of market efficiency.
E. These results are consistent with all forms of market efficiency.
Correct Answer: B

User Contributed Comments 3

User Comment
wink44 In response to a significant event.
steved333 Key is that the change happened the same day of the announcement. Immediate adjustment to new information= semistrong efficiency.
cong Adjustment to public information applies to the semi-strong EMH.
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