Which of the Following Does NOT Correctly Complete This Sentence

question 262

Multiple Choice

Which of the following does NOT correctly complete this sentence: In general, the link between an information announcement and the stock price is that ____________________.

• A) The expected stock return will change if the announcement contains a surprise component.
• B) The stock price will not change if the announcement provided only anticipated information.
• C) Only announcements that have already been discounted will affect the stock price.
• D) In order for the price of the stock to change, the announcement must be relevant to that particular stock and must be unanticipated.
• E) If markets are efficient in the semi-strong form, then the market will react rapidly to the new information.

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Definitions:

Agency Records

are documents, files, and data held by a governmental or private organization, detailing its activities, transactions, and decisions.

Recording Formats

Various methods or systems used to capture and store audio, video, or data for later retrieval and use.

Digital Record

Electronic documents that capture and store information digitally for easy retrieval and management.

Intervention Process

A structured method by which an individual or group acts to modify a situation, often involving strategies designed to address issues or problems.