Paul has just found out that Company X, whose
stock is very high, is about to file for bankruptcy. No one else knows
this information yet. Does Paul's knowledge support the efficient
market hypothesis?

Question

Paul has just found out that Company X, whose 
stock is very high, is about to file for bankruptcy. No one else knows 
this information yet. Does Paul's knowledge support the efficient 
market hypothesis?

Answer

No, because the stock's price is not based on the information Paul has.

Answer

No, because he has not invested in the stock of Company X.

Answer

Yes, because the stock's price reflects its true value.

Answer

Yes, because he can sell her shares before they declare bankruptcy.

Crowdly

Paul has just found out that Company X, whose stock is very high, is about to...

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