10. If a firm unexpectedly raises its dividend permanently and by a substantial amount, the firm's stock price:

A. should rise, given dividend discount models.

B. should decline, given discounted cash flow analysis.

C. will remain constant, due to market efficiency.

D. remain constant, due to random-walk behavior

4.

Which statement is correct?

A.	When stock prices barely change for a while, they are said to be stuck in a "bubble."
B.	Bubbles can result when prices rise rapidly and investors join the game on the assumption that prices will continue to rise.
C.	Most bubbles with hindsight can be justified by the improved fundamentals.
D.	"Bubbles" is another term for stocks in high-tech industries.