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 about a company, including news about its prospects, is already reflected in the stock price. Therefore, for news to have a large impact on the stock price, it must be new and unexpected, and must change investors' expectations of the company's future profitability in the long term. Short-term changes in profitability are likely to be already factored into the stock price, so they are unlikely to have a large impact on the price. Other choices (C and D) are not relevant to the efficient markets hypothesis.

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