According to the Efficient Markets Hypothesis, Worse-Than-Expected News About a Corporation

question 139

Multiple Choice

According to the efficient markets hypothesis, worse-than-expected news about a corporation will

• A)have no effect on its stock price.
• B)raise the price of the stock.
• C)lower the price of the stock.
• D)change the price of the stock in a random direction.

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Definitions:

Congressional Rules

Guidelines and procedures established by the United States Congress to organize its legislative process, including how bills are introduced, debated, and voted on.

Social Movement

An organized effort by a large group of people to achieve a particular goal, typically a political or social one, outside of traditional institutions.

Interest Group

An organization or association of people with common interests or goals that seeks to influence public policy and decision-making processes.

Economic Interest Groups

Organizations that seek to influence public policy in favor of specific economic interests and benefits of their members.