Multiple Choice
Two weeks ago Ace Electronics announced that it had developed a new chip design which was being considered by major companies for use in future smart phone development.At the close of trading the day before the announcement,Ace common stock closed at $20.On the day following the announcement,Ace closed at $21.Two days after the announcement the stock closed at $22.50.Four days after the announcement the stock traded at $23.Last week,Ace stock traded at $26,a level it has maintained since then.This is an example of a(n) :
A) over-reaction and correction.
B) underpricing.
C) delayed reaction.
D) pre-activity action.
E) efficient market reaction.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Which of the following are offered as
Q16: Market timing tends to lead to:<br>A)fairly consistent
Q22: Which of the following are offered as
Q34: Which of the following occurred during the
Q40: The day-of-the-week effect is defined as the
Q44: Which one of the following statements concerning
Q48: Arbitrage traders:<br>A)tend to be well capitalized.<br>B)tend to
Q49: Which one of the following best describes
Q52: In an efficient market, stocks with similar
Q79: Immediately following the Crash of 1987, the