Consistent with the semi-strong form of market efficiency

Assignment Help Financial Management

Reference no: EM131322659

Geothermal corporation issued a press release before the stock market opened announcing that its earnings are below last year’s earnings. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market efficiency. (a) When trading opened after the announcement, the stock price increased by 20%. (b) The stock price of Geothermal increased slowly over the 30 days before the announcement that earnings were lower than last year. (c) The stock price decreased by 10% immediately following the announcement but then increased throughout the day so that the closing price was only 2% below the previous day.

Reference no: EM131322659

Questions Cloud

What did you learn from the film : What did you learn from the film? What scene or scenes do you think you'll still remember a month from now and why those scenes? Did any part of the film surprise you

What can researchers do to minimize error variance : What can researchers do to minimize error variance?- Discuss the trade-off between internal and external validity. Which is more important? Explain.

Psychology developed primarily as an experimental science : Psychology developed primarily as an experimental science. However, during the past 20 to 25 years, non-experimental methods have become increasingly popular.

Analyze impact theory of consumer choice has on higher wages : Explain The impact the theory of consumer choice has on Demand curves, Higher wages, Higher interest rates and The role asymmetric information has in many economic transactions.

Consistent with the semi-strong form of market efficiency : Geothermal corporation issued a press release before the stock market opened announcing that its earnings are below last year’s earnings. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market e..

How to eliminate confound and minimize error variance : How to assign participants to conditions, how to eliminate confound variance and minimize error variance, and how to measure job performance.

What is the present value of winnings : You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $560,000 per year. Thus, in one year, you receive $1.56 million. In two years you get $2.12 million, and so on. If the appropriate intere..

What is the capital-abundant country : What is the Marginal Rate of Transformation impact? What is the labor-abundant country? What is the capital-abundant country? Could trade help reduce poverty in Brazil and other developing countries?

What is replication and what role does it play : What is replication, and what role does it play in increasing the external validity or generalizability of a study? In what way is the IRB involved in using participants in a research study

User Account

All Pages