Multiple Choice
The CEO of JLI Corp.decided to expand into a new market in 2010.At the end of 2010,JLI's stock price had decreased 5% since the beginning of the year.Which of the following statements is MOST correct?
A) The CEO made a poor decision to expand because the stock price decreased during the year.
B) The CEO made a poor decision to expand because the company's profits for the year obviously decreased, causing the drop in stock price.
C) The CEO's decision may have been optimal, keeping the stock price from falling more than 5% for the year.
D) CEO decisions are irrelevant because the efficient market determines the value of a company's stock.
Correct Answer:
Verified
Correct Answer:
Verified
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