New Labs just announced that it has received a patent for a product that will eliminate all flu viruses. This news is totally unexpected and viewed as a major medical advancement. Which one of the following reactions to this announcement indicates the market for New Labs stock is efficient? A. The price of the New Labs stock remains unchanged. B. The price of New Labs stock increases rapidly and then settles back to its pre-announcement level. C. The price of New Labs stock increases rapidly to a higher price and the remains at that price. D. All stocks quickly increase in value and then all but New Labs fall back to their original values. E. The value of all stocks suddenly increase and then level off at their higher values.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “New Labs just announced that it has received a patent for a product that will eliminate all flu viruses. This news is totally unexpected ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Mention 5 factors that determine the channels of distribution
Answers (1)
The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's a. market makers b. economic environment c. stakeholders d. social mentors
Answers (1)
Suppose the following information: The cost of a full-page color ad in the U. S. national edition of The Wall Street Journal (newspaper) is $327,897 and its U. S. audience size is 1,566,027. The cost of a full-page color ad in the U. S.
Answers (1)
Intel Corporation reported the following on its 2018 income statement (in millions) Sales revenue $59,387 Gross profit $36,191 Total expenses $23,317 What did Intel report for cost of goods sold during 2018?
Answers (1)
Regardless of whether a tax is levied on sellers or buyers, taxes encourage market activity. a. true b. false
Answers (1)
New Questions in Business
The current version of the physical activity and exercise guidelines for americans does not recommend:
Answers (1)
Entry for Issuing Materials Materials issued for the current month are as follows: Requisition No. Material Job No.
Answers (1)
In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. Who is the issuer of the bonds? The Hungarian government Hungary Bank Citigroup What type of bonds are these? a. Government bonds b.
Answers (1)
The andrews team has just purchased $56,804,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $5,680,400 (1/10 of its original cost).
Answers (1)
Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net income $211,844 Interest expense was $63,228.
Answers (1)