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Question 1) ABC Ltd. has just released good news: its earnings increased by 20% from last year's value. Many investors are anticipating an increase of

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Question 1) ABC Ltd. has just released good news: its earnings increased by 20% from last year's value. Many investors are anticipating an increase of 24%, following the implementation of ABC's radical plan to increase productivity and reduce costs. Suppose the market adheres to semi-strong form efficiency, will ABC's stock price increase or decrease when the announcement is made? a) No change b) Increase c) Decrease d) Difficult to tell

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