The existence of projects with +ve ENPV contradicts the idea that the stock market is strong form efficient
Sir the above statement is false but can you please explain me why?
The existence of information content in dividends contradicts the idea that the stock market is strong form efficient
Sir the above statement is true but can you please explain me why?
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MCQ
8y ago#1First one: just because a project has a +'vs NPB doesn't mean the company intends to invest in it. There may be better projects and they may not have enough finance.
Second one: Investors would already have the information if it were strong-form efficient.
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