Which one of the following is the best example of an announcement that is most apt to result in an unexpected return? A)the verification by senior management that the firm is being acquired as had been rumored B)a statement by a firm that it has just discovered a manufacturing defect and is recalling its product C)an announcement that a firm will continue its practice of paying a $3 a share annual dividend D)an announcement that the CFO of the firm is retiring June 1^st as previously announced E)a news bulletin that the anticipated lay-offs in a firm will occur as expected on December 1

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An announcement of a product recall due to a manufacturing defect is likely to result in unexpected returns, as customers who had previously purchased the product may return it and demand a refund or exchange. This can lead to unexpected costs for the firm. The other options are either expected (such as the retirement of the CFO) or already known (such as the lay-offs or the annual dividend payment).

Which One of the Following Is the Best Example of an Announcement