Question

If an announcement by a firm causes the price of that firm's stock to suddenly change,...

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:

the unexpected part of the announcement.

the expected part of the announcement

market inefficiency

systematic risk

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Answer #1

Option A is correct

The unexpected part of the announcement.

Explanation:

Market inefficiency can be the answer but incase of announcement the sudden change is generally caused by the unexpected announcement.

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