Which of the following would count as valid evidence against the efficient markets hypothesis? (a) Some investors make huge profits betting on specific stocks on the stock market. (b) Financial crises still occur. (c) Stock prices always rise two days after good news is released. (d) Stock prices are very volatile. (e) A company’s stock price does not always rise with good news about that company.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
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Which of the following would count as valid evidence against the efficient markets hypothesis?

(a) Some investors make huge profits betting on specific stocks on the stock market.

(b) Financial crises still occur.

(c) Stock prices always rise two days after good news is released.

(d) Stock prices are very volatile.

(e) A company’s stock price does not always rise with good news about that company.

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