Question
The food and drug administration (FDA) just announced yesterday that it approved a new drug by johanson & johanson co. (j&J) that cures covid-19. Immediately
The food and drug administration (FDA) just announced yesterday that it approved a new drug by johanson & johanson co. (j&J) that cures covid-19. Immediately following the news, you observe that J&J's stock had an abnormal return od 0.0% Which BEST describes this market's reaction to the new?
A. The market didn't care about finding a vaccine for curing Covid-19.
B. The market's return must have been zero.
C. The FDA's approval was already anticipated by the market.
D. J&J's stock will likely rise in value tomorrow.
E. The market didn't react rationally to the news.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
