Efficient market hypothesis
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Rose85
Consider that a major executive of an oil and gas company mentions at lunch to a friend who is a portfolio manager that the government of Qatar is about to award her firm a huge exploration contract. The price of the stock when the conversation occurred was 50QRs per share. The friend proceeded to advise her best clients to purchase stock in the company. Just before the government of Qatar announces the deal, the stock price had risen to 60QRs per share. After the announcement the stock did not change its value. Is the market efficient? Why, or why not?
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replied to:  Rose85
Rose85
Replied to:  Consider that a major executive of an oil and gas company...
I posted it 5 days ago and no reply till now !
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replied to:  Rose85
150248
Replied to:  Consider that a major executive of an oil and gas company...
The market is very efficient since the price adjusted even before the information is announced. the market is a strong form efficiency.tHE PRICES IS ALREADY REFLECTED TO PRIVATE INFORMATION
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