What form of market efficiency must be in effect

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1. An investor reads a research report on a company's financial statements and invests based upon this report. What form of market efficiency must be in effect for the investor to earn excess profits from this investment?

A. Arbitrage-form

B. Strong-form

C. Neutral-form

D. Weak-form

2.Which of the following is the subject of event study?

A. The analysis of company earnings reports

B. How stock prices react when two firms merge

C. The analysis P/E ratios

D. The ratio of stock price movement to the movement of the market as a whole

Reference no: EM132144577

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