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Question 4 (2 points) Investors expect a company to announce a 5% decrease in earnings. Instead, the company announces that earnings decreased by 2%. Question

Question 4 (2 points)

Investors expect a company to announce a 5% decrease in earnings. Instead, the company announces that earnings decreased by 2%.

Question 4 options:

The stock's price will fall after the announcement because the company had negative earnings

The stock's price will rise after the announcement because the company's earnings weren't as bad as expected

The stock's price will not change because it will have already fallen due to expectations of negative earnings, so the announcement will have no affect

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