PROBLEMS DISCUSSION QUESTIONS P6-1 Interpreting stock price changes (Lo 6-6C) On July 10, 2012, Advanced Micro Devices (AMD) announced that it expected its revenues for the second quarter to be about $1.4 billion. At the time of the announcement, financial analysts expected AMD's second quarter revenue to be about $1.6 billion. Required 1. Would AMMD's anmouncement cause & change in the company's stock price on the date of the announcement? Explain why or why not. (Assume the announcement was made while the market was open.) 2 Consider the following two scenarios: a. The $200 million difference between AMD's management forecast and analysts' forecast i completely to a previously reported monthlong labor strike at one of AMD's manufacturing facilities b. The $200 million difference between AMD's management forecast and analysts' forecast is attributable to AMD's previously undisclosed decision to cut prices to meet those of a competitor. Do you expect the magnitude of the stock price change to be greater under scenario (a) or scenario (b)