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Expectations and efficient markets

Expectations and Efficient Markets - Geothermal Corp. just announced good news: Its earnings have increased by 20 percent. Most investors had anticipated an increase of 25 percent. Will Geothermal's stock price increase or decrease when the announcement is made?

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Finance Basics: Expectations and efficient markets

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expectations and efficient markets

Reference No:- TGS01451783

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Balance sheet-statement of cash flow

Q : Determining the expected return on stock

Q : Communicating negative variances to management

Q : How a given investor chooses an optimal portfolio

Q : Expectations and efficient markets

Q : Short-term investment in stock securities

Q : Analyzing the use of databases in a large bank

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expectations and efficient markets

Reference No:- TGS01451783

Recent Questions Asked Finance Basics

Q : Balance sheet-statement of cash flow

Q : Determining the expected return on stock

Q : Communicating negative variances to management

Q : How a given investor chooses an optimal portfolio

Q : Expectations and efficient markets

Q : Short-term investment in stock securities

Q : Analyzing the use of databases in a large bank

Q : What is the expected return on pigeon stock

Q : Risk differences among various investments

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