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:

1933-1940

A specific time period noted for significant global and political events, including the depths of the Great Depression and the lead-up to World War II.

Percent

A part or other object per hundred, used in mathematics and statistics to describe proportions.

Political Trends

Prevailing directions or patterns of change within the political landscape, reflecting shifts in public opinion, policy-making, and electoral behavior over time.

Fascist Movements

Political movements characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy.