You hear that Ford is likely to announce strong fourth quarter profits at its next shareholders' meeting. You excitedly decide to buy some Ford stock. When you look up Ford stock prices, you notice that Ford's stock price ________. This is because of ________.
A) is unpredictable; the lack of a random walk
B) is lagging behind other gains in the stock market; its status as a "moribund" company
C) has fallen; the market believes Ford is lying
D) is flat; pundits believe Ford will not meet its targets
E) has already risen; markets are informationally efficient
Correct Answer:
Verified
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