In an Efficient Market When a Firm Makes an Announcement

Multiple Choice

In an efficient market when a firm makes an announcement of a new product or product enhancement with superior technology providing positive NPV the price of the stock will:

A) stay at the same price, with no net effect.
B) rise on the same day to the new price.
C) decline gradually over the next few days.
D) rise gradually over the next few days.
E) drop on the same day to the new price.