Credit Bubble Stocks

Thursday, October 6, 2011

Paper: "How Well Do Financial Markets Separate News from Noise? Evidence from an Internet Blooper"

"How efficiently do financial markets process news of unexpected events? [W]e examine an unusual episode involving a false news report that provides a unique look into this question. We find that even when noise can be clearly identified, markets may take as long as a week to fully process the 'signal,' or relevant information, component of news."
CP at 2:03 PM

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