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question 77

Essay

Use the information for the question(s)below.
In a surprise announcement,NASA released details of a major contract with Lockheed-Martin (LMT)that would increase LMT's market value by $7.5 billion.It was widely expected by the market that this contract would be awarded to LMT's major competitor Boeing (BA).Assume that Boeing has 800 million shares outstanding and Lockheed Martin has 425 million shares outstanding.Prior to this announcement,the market felt that the probability of Boeing winning the contract was 90% and that Lockheed-Martin's chance was only about 10%.
-What do you anticipate will happen to Lockheed-Martin and Boeing's stock prices are a result of this surprise announcement?

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Definitions:

Conscious Free Will

The concept that individuals have the ability to make choices and decisions consciously and voluntarily.

Fixed-Ratio Schedule

A type of reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses have occurred.

Reinforcer

Any stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated.

Operant Behavior

Behavior that is controlled or influenced by its consequences, including rewards and punishments.