An individual stock price
A) determines investment spending.
B) mimics the information contained in the stock market index.
C) determines the future performance of the firm.
D) incorporates all news about the firm's future prospects.
E) is inversely related to the interest rate.

Question

Quizplus · Accepted Answer

An individual stock price incorporates all the news about the firm's future prospects. While it can be affected by the overall stock market, it is not dependent on it and does not determine investment spending. It also does not determine the future performance of the firm and is not directly related to the interest rate.

An Individual Stock Price