Suppose the government announces that, based on a just-completed survey, the growth rate in the...
70.2K
Verified Solution
Link Copied!
Question
Finance
Suppose the government announces that, based on a just-completed survey, the growth rate in the economy is likely to be 2% in the coming year, as compared to 5% for the past year. Will security prices increase, decrease, or stay the same following this announcement? a. Decrease--assuming the information was expected by the market. b. Increase--assuming the market was not expecting the annoucement. c. Decrease--the information was already priced into the market prices (markets are not efficient) d. Stay the same--the information was already priced into the market prices (markets are efficient)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
