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.

Question

Social Studies

Marianna Jarvis

28 December, 04:47

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.

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Answers (1)

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Tuffy · Answer 1

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.