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CIMA Financial Strategy F3 Question # 14 Topic 2 Discussion

CIMA Financial Strategy F3 Question # 14 Topic 2 Discussion

F3 Exam Topic 2 Question 14 Discussion:
Question #: 14
Topic #: 2

A listed company has recently announced a profit warning.

 

The company's share price fell 20% on the day of the announcement but had been fairly static in the weeks leading up to the announcement.

 

Which form of efficient market is most likely to be indicated by this share price movement?


A.

Weak form


B.

Semi-strong form


C.

Strong form


D.

Random walk


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