Blinky Gold Mines makes an unexpected announcement regarding gold production at 2pm, but the general manager let slip the information to his investment broker when they met for coffee at 10 in the morning. Shares of the company were traded at 12pm, 2.10pm, 2.30pm and 4pm. If the market for Blinky Gold Mines’ shares is semi-strong form efficient (i.e strong-form inefficient) then the share price established at which trade will fully reflect the new information? 2.30 pm 4 pm 2.10 pm 12 pm

Blinky Gold Mines makes an unexpected announcement regarding gold production at 2pm, but the general manager let slip the information to his investment broker when they met for coffee at 10 in the morning. Shares of the company were traded at 12pm, 2.10pm, 2.30pm and 4pm. If the market for Blinky Gold Mines’ shares is semi-strong form efficient (i.e strong-form inefficient) then the share price established at which trade will fully reflect the new information? 2.30 pm 4 pm 2.10 pm 12 pm

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter18: Auctions

Section: Chapter Questions

Problem 18.6IP

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