Blinky Gold Mines makes an unexpected announcement regarding gold production at 2pm, but the general manager let slip the information to his investment broker when they met for coffee at 10 in the morning. Shares of the company were traded at 12pm, 2.10pm, 2.30pm and 4pm. If the market for Blinky Gold Mines’ shares is semi-strong form efficient (i.e strong-form inefficient) then the share price established at which trade will fully reflect the new information? 2.30 pm 4 pm 2.10 pm 12 pm

Blinky Gold Mines makes an unexpected announcement regarding gold production at 2pm, but the general manager let slip the information to his investment broker when they met for coffee at 10 in the morning. Shares of the company were traded at 12pm, 2.10pm, 2.30pm and 4pm. If the market for Blinky Gold Mines’ shares is semi-strong form efficient (i.e strong-form inefficient) then the share price established at which trade will fully reflect the new information? 2.30 pm 4 pm 2.10 pm 12 pm

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog

Section: Chapter Questions

Problem 4DQ

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