Suppose That Interest Rates Unexpectedly Rise and That FineLine Corporation

question 62

Multiple Choice

Suppose that interest rates unexpectedly rise and that FineLine Corporation announces that revenues from last quarter were down but not as much as the public had anticipated they would be down. According to the efficient markets hypothesis, which of the following makes the price of FineLine Corporation Stock fall?

• A)Both the interest rate rising and the revenue announcement
• B)Neither the interest rate rising nor the revenue announcement
• C)Only the interest rate rising
• D)Only the revenue announcement

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Definitions:

Prolactin

A hormone produced by the anterior pituitary gland, primarily associated with lactation and the development of the mammary glands.

Placenta

A vital organ that develops in the uterus during pregnancy, facilitating the exchange of nutrients, oxygen, and waste between mother and fetus.

Umbilical Cord

A tube that connects the fetus to the placenta.

Uterine Wall

The muscle layer of the uterus, which thickens during pregnancy in preparation for childbirth.