Explore BrainMass

Explore BrainMass

    Semi strong from efficient

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You do a study and find out that on average stock prices for firms decrease 3% evfor every 5% decrease in inside ownership. you are watching teh nightly business report and find out hat Magic Tape's stock has announced that insiders have sold 10% of their holdeing .. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day be froe unchanged at $30 per share. If markets are a least semi strong from efficient, what would you expect?
    a. you would lose $4,000
    b. you would expect magic tape to close at $28 the day of the announcment
    c you would lose $2.00 per share
    d you would lost $1,800

    © BrainMass Inc. brainmass.com June 3, 2020, 11:56 pm ad1c9bdddf

    Solution Preview

    As per investopedia Semi-Strong Form Efficiency is a class of EMH (Efficient Market Hypothesis) that implies all public information is calculated into a stock's current share price. Meaning that neither fundamental nor technical analysis can be used to achieve superior gains.This class of EMH ...

    Solution Summary

    The response discusses the semi strong efficient market.