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Basic Question 17 of 20
One reason for expecting a price increase is that companies typically raise their dividends when they split their stock. The dividend change has an information effect that the company will have a new, higher level of earnings in the future. A stock split may signal a good investment in the stock. This anomaly would contradict the ______ form of the efficient market hypothesis.
B. semi-strong
C. strong
A. weak
B. semi-strong
C. strong
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Learning Outcome Statements
describe market anomalies
CFA® 2024 Level I Curriculum, Volume 3, Module 3.