Go to figure above imagine that the stock prices of target firms in acquisitions responded to acquisition announcements over a three-day period rather than almost instantly. This acquisition market would be described as inefficient because

options:

a)	it responded too rapidly to old information

b)	it responded too rapidly to new information

c)	it responded too slowly to new information

d)	it responded too rapidly to old information

e)	none of the above

FIGURE Time Series of the Mean Price Index of the Shares of 161 Target Firms Involved i Successful Tender Offers 1.50 1.32 1.19 1.00 -k 30 10 10 40 Trading days Announcement Execution date date