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If Unexpected News Raised People's Expectations of a Corporation's Future

Question 38

Multiple Choice

If unexpected news raised people's expectations of a corporation's future dividends and price,then before the price changes this corporation's stock would be


A) overvalued,so its price would rise.
B) overvalued,so its price would fall.
C) undervalued,so its price would rise.
D) undervalued,so its price would fall.

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