Under the efficient markets hypothesis, for news about a company's prospects to have a large impact on the price of the company's stock the news must

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According to the efficient markets hypothesis, all publicly available information, including news about a company's prospects, is already reflected in the stock price. However, if the news is expected to have a long-term impact on the company's profitability, it may cause investors to revise their expectations about the company's future earnings potential, leading to a change in the stock price. Short-term news may have less of an impact as it is already factored into the current price. Choices A, C, and D are incorrect as they do not accurately reflect the impact of news on a company's stock price under the efficient markets hypothesis.

Under the Efficient Markets Hypothesis, for News About a Company's