Which of the Following Are the Most Likely Reasons for Why

question 3

Multiple Choice

Which of the following are the most likely reasons for why a stock price might not react at all on the day that new information related to the stock issuer is released?
I.Insiders knew the information prior to the announcement
II.Investors need time to digest the information prior to reacting
III.The information has no bearing on the value of the firm
IV.The information was anticipated

• A) I and II only
• B) I and III only
• C) II and III only
• D) II and IV only
• E) III and IV only
• F) None of the above.

---

Definitions:

Comprehensive Income

A measure of all changes in equity of a company during a period from transactions and other events from non-owner sources. It includes all revenues and gains, expenses and losses.

Finance Costs

Expenses associated with borrowing money, including interest payments, bank charges, and other related costs.