Question
Buddy Aviation, Inc. (BUD) announces that it has invented an aircraft engine that runs on water (H2O) and gets 200 miles per gallon per engine
Buddy Aviation, Inc. (BUD) announces that it has invented an aircraft engine that runs on water (H2O) and gets 200 miles per gallon per engine (using water as fuel!). The next day, the value of BUD in the stock markets goes from $11 per share to $150 per share...and the price remains near $150 for many years following the announcement. This type of reaction in the market to the announcement by BUD is best described as __________.
Group of answer choices
Delayed
Overreaction
Efficient
Superficial
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Fundamentals Of Corporate Finance MyLab Finance Student Acccess Combo Card
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0136714811, 978-0136714811
