求解释～凑字凑字凑字

问题如下：

After the public announcement of the merger of two firms, an investor makes abnormal returns by going long on the target firm and short on the acquiring firm. This most likely violates which form of market efficiency?

选项：

A.Semi-strong-form only

B.Semi-strong-form and strong-form

C.Weak-form and semi-strong-form

解释：

1. Incorrect. A market that is not semi-strong-form efficient is also not strong-form efficient. Thus, violating the semi-strong-form efficiency also implies violating the strong-form efficiency.

2. Correct. In a semi-strong-form efficient market, prices adjust quickly and accurately to new information. In this case, prices would quickly adjust to the merger announcement, and if the market is a semi-strong-form efficient market, investors acting after the merger announcement would not be able to earn abnormal returns. Therefore, the market is not semi-strong-form efficient. A market that is not semi-strong-form efficient is also not strong-form efficient. Thus, violating the semi-strong-form efficiency also implies violating the strong-form efficiency. However, the market could still be weak-form efficient because past prices are not being used to make abnormal profits. Thus, we cannot say that the weak-form market efficiency has been violated.

3. Incorrect. The market could still be weak-form efficient, as past prices are not being used to make abnormal profits. Thus, we cannot say that the weak-form market efficiency has been violated.

• contrast weak-form, semi-strong-form, and strong-form market efficiency