If BP Develops a Fuel That Eliminates Noxious Emissions but Costs

question 141

Multiple Choice

If BP develops a fuel that eliminates noxious emissions but costs the same as gasoline, the efficient market hypothesis predicts that

• A)the stock prices of companies building emissions-testing equipment will rise.
• B)all fuel company stock prices will rise.
• C)the prices of all fuel company stocks except BP stocks will rise.
• D)BP's stock price will rise immediately.
• E)BP's stock price will not change.

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Definitions:

Duress Of Goods

A situation where goods are obtained or retained through coercion, or the wrongful collection of goods under pressure.

Ethical Policy

A set of guidelines that outlines the principles and values governing the behavior of individuals or organizations.

Duress

Compulsion, force, or pressure applied to someone to coerce them into taking an action against their will or better judgement.

Unilateral Mistake

A situation in contract law where only one party holds an incorrect belief about a basic assumption on which a contract is based, potentially affecting the enforceability of the contract.