You Are Perusing the Reuters News Web Page and Read

question 18

Multiple Choice

You are perusing the Reuters news Web page and read the following: "NEW YORK, Aug 18 (Reuters) Major U.S. airlines will see a 6 percent drop in passengers during the eight-day Labor Day holiday period as high oil prices continue to roil the industry, the airlines' trade organization predicted on Monday." Using the efficient-markets hypothesis, you believe and expect to see .

• A)airlines will go bankrupt; stock prices fall
• B)airline stock prices are currently undervalued; stock prices rise
• C)airline stock prices are currently overvalued; stock prices fall
• D)airline tickets will fall; fewer passengers traveling

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Definitions:

Bilateral

Relating to or involving two sides, parties, or countries, often used to describe agreements or communications.

Unilateral

Involving only one side or party, often referring to agreements or actions taken independently by one entity without the need for consent or participation of another.

Contract Law

A branch of legal studies focusing on the creation, interpretation, and enforcement of agreements between parties with mutual obligations.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.