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If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by: Multiple Choice

a.the expected part of the announcement.
b.market inefficiency.
c.the unexpected part of the announcement.
d.systematic risk.
e.expectations of a revised announcement in the near term.

Respuesta :

Answer:

b.market inefficiency.

c.the unexpected part of the announcement.

d.systematic risk.

Explanation:

  • The price of a firm will likely to be based on the cause of a sudden change in the market value of the item or the unexpected parts of the announcements or can be systematic risks and changes associated with the firms or stocks.

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