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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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