The best definition of delayed reaction is:

Multiple Choice

Statistical measure of maximum loss used by banks and other financial institutions to manage risk exposures.

Situation in which security prices reflect available information.

The price instantaneously adjusts to and fully reflects new information; there is no tendency for subsequent increases and decreases.

The price over adjusts to the new information; it $$overshoots$$ the new price and subsequently corrects.

The price partially adjusts to the new information; $10$ days elapse before the price completely reflects the new information.