You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock, you can expect to earn

Question $19$Select one:

A$.$

above average returns since your stock price will definitely appreciate as higher profits are earned.

B$.$

a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.

C$.$

below average returns since computer makers have low profit rates.

D$.$

above average returns since you will share in the higher profits.

Clear my choice