A successful firm like microsoft has consistently generated large profits for years. is this a violation of the emh?

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21-11-2017
Business

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A successful firm like microsoft has consistently generated large profits for years. is this a violation of the emh?

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W0lf93 W0lf93 · Answer 1 · 2017-11-30T22:51:54+01:00

W0lf93 W0lf93

30-11-2017

Answer: No. Microsoft's continuing profitability does not imply that stock market investors who purchased Microsoft shares after its success was already evident would have earned an exceptionally high return on their investments.

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