Question

Evidence seems to support the view that studying public information to identify mispriced stocks is: Select one: a. effective as long as the market is only semistrong form efficient. b. effective provided the market is only weak form efficient. c. ineffective. d. effective only in strong form efficient markets. e. ineffective only in strong form efficient markets.

Answer 1

Answer:

Correct Answer:

c. ineffective.

Explanation:

In stock market, there are so many firms upon whose stocks are being traded on by various investors. Most of these stocks could be legit while others could be fraud through price fixing or mispricing. Evidence carried out has shown that, it is highly ineffective studying public information in-order to identify mispriced stocks.