Suppose That Interest Rates Unexpectedly Rise and That FineLine Corporation

question 70

Multiple Choice

Suppose that interest rates unexpectedly rise and that FineLine Corporation announces that revenues from last quarter were down but not as much as the public had anticipated they would be down.According to the efficient markets hypothesis,which of the these things make the price of FineLine Corporation Stock fall?

• A)both the interest rate rising and the revenue announcement
• B)neither the interest rate rising nor the revenue announcement
• C)only the interest rate rising
• D)only the revenue announcement

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