In an Efficient Market,ignoring Taxes and Time Value,the Price of Stock

question 11

Multiple Choice

In an efficient market,ignoring taxes and time value,the price of stock should:

• A)decrease by the amount of the dividend immediately on declaration date.
• B)decrease by the amount of the dividend immediately on ex-dividend date.
• C)increase by the amount of the dividend immediately on declaration date.
• D)increase by the amount of the dividend immediately on ex-dividend date.
• E)Both B and C.

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Definitions:

Stressful Events

Situations or occurrences that cause a significant amount of stress or discomfort to an individual.

General Adaptation Syndrome

A three-stage response that the body goes through when exposed to stress, described as alarm, resistance, and exhaustion stages.

Exhaustion Phase

The final stage of the body's response to stress, where all energy resources have been depleted, leading to a decreased ability to resist stressors and potential burnout.

Multiple Sclerosis

A chronic autoimmune disease affecting the central nervous system, leading to demyelination, inflammation, and diverse neurological symptoms.