Which of the Following Statements Best Describes the Average Stock

Multiple Choice

Which of the following statements best describes the average stock price reactions to mergers?

A) Both the target's and the acquirer's share prices increase slightly.
B) Both the target's and the acquirer's share prices increase substantially.
C) The target's share price increases substantially,while the acquirer's share price falls substantially.
D) The target's share price increases substantially,while the acquirer's share price increases only slightly.
E) The target's share price falls slightly,while the acquirer's share price increases substantially.