Information and Market Returns Suppose the government announces that, based on a just- completed survey, the growth

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Information and Market Returns Suppose the government announces that, based on a just- completed —survey, the growth rate in the economy is likely to be 2 percent in the coming year, as compared.to5 percent for the past year. Will security prices increase, decrease, or stay the same following this announcement? Does it make any difference whether the 2 percent figure was anticipated by the market? Explain.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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