Mr.Rhoades is the CEO of Daily News.The majority of stockholders do not approve of the decisions made by Mr.Rhoades and have repeatedly requested that he be ousted.Over the last couple of months,it has become apparent that the CEO is going to be replaced by a member of the board,Mr.Bentley,who is highly respected.This morning,the official announcement was made that Mr.Rhoades has stepped down and will be replaced immediately by Mr.Bentley.How is the stock price of the Daily News most apt to react to this announcement?
A) Highly positive and immediate reaction
B) A slow but positive reaction
C) An immediate negative reaction
D) Middling reaction over multiple days
E) No reaction
Correct Answer:
Verified
Q21: The standard deviation of a risk-free asset
Q22: The beta of a security is calculated
Q23: The capital market line
A)assumes investors can borrow,but
Q24: The risk of an individual security that
Q25: Over time,the unexpected return on a company's
Q27: The principle of diversification tells us that
A)concentrating
Q28: Which one of the following is an
Q29: Well-diversified portfolios have negligible
A)systematic risks.
B)unsystematic risks.
C)expected returns.
D)variances.
E)market
Q30: Which one of the following would tend
Q31: The combination of the efficient set of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents