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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

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 UPCs policies. Should investors not buy UPC stock after the announcement because the litigation will cause an abnormally low rate of return? Why?

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