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Part $1$

Suppose that you are asked to forecast future stock prices of ABC$$ Corporation, so you proceed to collect all available information. The day you announce your$$ forecast, competitors of ABC Corporation announce a brand new plan to merge and reshape the structure of the industry.

Part $2$

Would your forecast still be considered$$ optimal? $($Select all that$$ apply.$)$

A$.$

Your forecast is not optimal because it does not adhere to the theory of rational expectations.

B$.$

Your forecast is considered$$ optimal, but for a short period of time.

C$.$

Your forecast is still considered to be$$ optimal, since it was made with all available information at the time.

D$.$

The forecast is not optimal since it fails to take into account the impact of the merger and reshaping of the structure of the industry.