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NEW QUESTION: 1
Ulmus Co, a company listed on a major stock exchange, received a confidential letter from a rival company on 30 April 2009 offering to buy all the shares in Ulmus Co at a premium of 25% on their current market value. At a private meeting, convened on the same day, the directors of Ulmus Co agreed to accept the offer and made a public announcement of this decision on 2 May 2009.
Which ONE of the following combinations of possible share price reactions (increase/no effect) would you expect on 2 May 2009 under the semi-strong and strong forms of market efficiency?
A. Semi-strong form = No effect, Strong form = No effect
B. Semi-strong form = Increase, Strong form = Increase
C. Semi-strong form = Increase, Strong form = No effect
D. Semi-strong form = No effect, Strong form = Increase
Answer: C
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A. Option A
B. Option D
C. Option C
D. Option E
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D. Fast Recovery Area must be enabled for the database.
E. Row movement must be enabled.
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