Problem: You do a study and find out that on average stock prices for firms decrease 3% evfor every 5% decrease in inside ownership. you are watching teh nightly business report and find out hat Magic Tape's stock has announced that insiders have sold 10% of their holdeing .. You are concerned because you own 1,000 shares of Magic Tape and it had closed the day be froe unchanged at $30 per share. If markets are a least semi strong from efficient, what would you expect?
a. you would lose $4,000
b. you would expect magic tape to close at $28 the day of the announcment
c you would lose $2.00 per share
d you would lost $1,800