Which Two of the Following Are the Most Likely Reasons

question 75

Multiple Choice

Which two of the following are the most likely reasons 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

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Definitions:

Public Participation

The involvement of citizens in decision-making processes, typically regarding policies or projects that affect their community or environment.

Bird Populations

The number of individual birds within a specific species, locality, or habitat.

Passenger Pigeon

A species of bird that was once abundant in North America but became extinct in the early 20th century due to overhunting and habitat destruction.

Extinct

A term describing a species that no longer exists anywhere on Earth.