Dover Lumber Announced Last Week That Its Unpopular CEO Had

question 45

Multiple Choice

Dover Lumber announced last week that its unpopular CEO had resigned. In response to this announcement, the firm's stock price increased from $17 a share to $23 a share. The following day the price declined to $21 a share and has remained constant at that level. This is an example of a(n) :

• A)overreaction and correction.
• B)underpricing.
• C)delayed reaction.
• D)pre-activity action.
• E)efficient market reaction.

---

Definitions:

Waste Products

Materials that are not wanted or are surplus after the completion of a process or during bodily functions.

Fluid Balance

The equilibrium between the fluid intake and fluid loss in the body to maintain health and proper physiological functions.

Glomerulonephritis

Inflammation of the glomeruli, which are tiny structures within the kidneys that filter blood, potentially leading to kidney failure.

Cystitis

An inflammation of the bladder, often due to infection, that causes discomfort and a frequent, urgent need to urinate.