Investment Mathematics

4.5. [2-01:33] A company's common stock is currently selling for 25 per share. All of the financial analysts following the firm are surprised when the company unexpectedly announces that it expects its future economic income to be low pxt quarter. Assume that the stock market is semi-strongly efficient How should this news affect t (A) The price should not chai (B) The price should not change andre next quarter. (C) The price should fall immediately to adjust for the expected slowing earnings growth. (D) The price should fall gradually over the next quarter. (E) The price should go up following the announcement 4.5. [2-01:33] A company's common stock is currently selling for 25 per share. All of the financial analysts following the firm are surprised when the company unexpectedly announces that it expects its future economic income to be low pxt quarter. Assume that the stock market is semi-strongly efficient How should this news affect t (A) The price should not chai (B) The price should not change andre next quarter. (C) The price should fall immediately to adjust for the expected slowing earnings growth. (D) The price should fall gradually over the next quarter. (E) The price should go up following the announcement