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:

Personal Identification

The process of recognizing and verifying an individual's identity through various means.

Subordinating Member

A member of a group or organization who is ranked lower and is subject to the authority or control of others.

Social Identification

The process by which individuals associate themselves with specific groups, adopting the group's characteristics to form their identity.

Role Model

An individual whose behavior, example, or success is or can be emulated by others, especially by younger people.