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a)Consider each statement independently. Which of the statements would likely be consistent with the semi-strong form of...

a)Consider each statement independently. Which of the statements would likely be consistent with the semi-strong form of EMH? [I] Stocks that issue a stock split tend to experience positive abnormal returns in the period (1 year) before the public split announcement. [II] Stocks that issue a stock split tend to experience positive abnormal returns in the 1 year after the public split announcement.

b)Which of the following statement is NOT a violation of any form of the Efficient Market Hypothesis?

A company that beats its earnings forecast this quarter is more likely to beat its earnings forecast again next quarter.

A company that generates positive abnormal return today is more likely to generate positive abnormal return tomorrow.

A company that beats its earnings forecast this quarter is more likely to generate positive abnormal return tomorrow.

None of the above.
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Answer #1

1. Option , I] Stocks that issue a stock split tend to experience positive abnormal returns in the period (1 year) before the public split announcement.

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