A friend of yours owns a company that is about to get a large government contract.  He tells you this inside information about the contract and also mentions that it should make the company's stock price increase dramatically.  If you invest based on this inside information, then you are implicitly saying that stock markets are inefficient in which context?   Question 5 options:   weak form efficient market theory   semi-strong form efficient market theory   strong form efficient market theory

Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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A friend of yours owns a company that is about to get a large government contract.  He tells you this inside information about the contract and also mentions that it should make the company's stock price increase dramatically.  If you invest based on this inside information, then you are implicitly saying that stock markets are inefficient in which context?

 

Question 5 options:

 

weak form efficient market theory

 

semi-strong form efficient market theory

 

strong form efficient market theory

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