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Question 6 Which of the following are the most likely reasons for why a stock price might not react at all on the day that

Question 6

Which of the following are the most likely reasons for why a stock price might not react at all on the day that new information related to the stock issuer is released?

I. Insiders knew the information prior to the announcement

II. Investors need time to digest the information prior to reacting

III. The information has no bearing on the value of the firm

IV. The information was anticipated

I and II onlyI and III onlyII and III onlyII and IV onlyIII and IV onlyNone of the above.

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