Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i

Question

blsea [12.9K]

3 years ago

15

Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i

s this a violation of the emh

Business

1 answer:

ohaa [14] · Answer 1 · 2022-02-16T19:29:13+03:00

Market efficiency infers financial specialists can't gain abundance hazard balanced benefits. On the off chance that the stock cost run-up happens when just insiders know about the coming profit increment, at that point, it is an infringement of solid frame effectiveness. On the off chance that general society likewise is aware of the expansion, at that point this abuses semi-solid shape proficiency.