If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by:
the unexpected part of the announcement.
the expected part of the announcement
market inefficiency
systematic risk
Option A is correct
The unexpected part of the announcement.
Explanation:
Market inefficiency can be the answer but incase of announcement the sudden change is generally caused by the unexpected announcement.
If an announcement by a firm causes the price of that firm's stock to suddenly change,...
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