Multiple Choice
Which two of the following are the most likely reasons why a stock price might not react at all on the day that new information related to the stock issuer is released?
I.insiders knew the information prior to the announcement
II.investors need time to digest the information prior to reacting
III.the information has no bearing on the value of the firm
IV.the information was anticipated
A) I and II only
B) I and III only
C) II and III only
D) II and IV only
E) III and IV only
Correct Answer:
Verified
Correct Answer:
Verified
Q70: If the variability of the returns on
Q71: A stock had returns of 11 percent,-18
Q72: You've observed the following returns on Crash-n-Burn
Q74: Bayside Marina just announced it is decreasing
Q76: Which one of the following statements correctly
Q77: Suppose a stock had an initial price
Q78: Which one of the following statements is
Q79: The average annual return on small-company stocks
Q80: What are the two primary lessons learned
Q85: You are aware that your neighbor trades