Derivative Instrument and Derivative Market Features
Quick practice
Question 1 of 5
MBT Corporation recently announced a 15% increase in earnings per share (EPS) over the previous period.
The consensus expectation of financial analysts had been an increase in EPS of 10%.
After the earnings announcement, the value of MBT common stock increased each day for the next five trading days, as analysts and investors gradually reacted to the better-than-expected news.
This gradual change in the value of the stock is an example of:
A
efficient markets.
B
NA
C
speculation.
D
inefficient markets.
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