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The market index model is valid. Matthews Corporation has a beta of 1.2. The annualized market return yesterday was 13%, and the risk-free rate is

The market index model is valid. Matthews Corporation has a beta of 1.2. The annualized market return yesterday was 13%, and the risk-free rate is currently 5% per year. You observe that Matthews had an annualized return yesterday of 14%. Assuming that markets are efficient, this suggests that

A. good news about Matthews was announced yesterday.

B. bad news about Matthews was announced yesterday.

C. no news about Matthews was announced yesterday.

D. the market interest rate rose yesterday.

E. the market interest rate fell yesterday.

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