13.6 On January 10, 1985, the following announcement was made: “Early today the Justice Department reached a decision in the Universal Product Care (UPC) case. UPC has been found guilty of discriminatory practices in hiring. For the next five years, UPC must pay

$2 million each year to a fund representing victims of UPC’s policies.” Should investors not buy UPC stock after the announcement because the litigation will cause an abnormally low rate of return? Why?