Which of the following is most accurate concerning the bounds on a stock's price set by informed investors and/or the volatility of the stock within those bounds?
A) As long as the price is within the bounds,the volatility will always be relatively low.
B) Share prices can be significantly volatile within the bounds but only when new information about a company has been revealed;otherwise,volatility will be relatively low.
C) The bounds are set by mechanical traders and are fairly constant over time.
D) Share prices can be significantly volatile within the bounds even at times when no new information about a company has been revealed.
Correct Answer:
Verified
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