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