Two Weeks Ago Ace Electronics Announced That It Had Developed

question 63

Multiple Choice

Two weeks ago Ace Electronics announced that it had developed a new chip design which was being considered by major companies for use in future smart phone development.At the close of trading the day before the announcement,Ace common stock closed at $20.On the day following the announcement,Ace closed at $21.Two days after the announcement the stock closed at $22.50.Four days after the announcement the stock traded at $23.Last week,Ace stock traded at $26,a level it has maintained since then.This is an example of a(n) :

• A)over-reaction and correction.
• B)underpricing.
• C)delayed reaction.
• D)pre-activity action.
• E)efficient market reaction.

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Definitions:

Respiratory Center

Group of nerve cells in the medulla oblongata that sends out nerve impulses on a rhythmic basis, resulting in involuntary inspiration on an ongoing basis.

Intercostal Nerves

Nerves located between the ribs that play a role in the respiratory process by controlling the muscles of the chest wall.

Alveolar Walls

Thin layers of tissue forming the air sacs in the lungs, where gas exchange with the blood takes place.

Spirometer

A device used to measure the volume of air inhaled and exhaled from the lungs to assess lung health.