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Complete the following sentence

Finance

Complete the following sentence. If prices capture all relevant information, then the prices will follow a ____________.
Select one:
Random walk
Predictable patternQuestion How would the value of a firm be affected by the following events?
A. The introduction of a new product designed to increase the firm’s cash inflows is delayed by
one year. The size of the expected cash flows is not affected.
B. A firm announces to the press that its cash earnings for the coming year will be 10 percent
higher than previously forecast.

Option 1

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Option 2

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