Suppose that Google announces that its profits for the third quarter of 2013 were $1.6 billion. As a result of this announcement the price of Google's stock declines. The best explanation of this is
A) market participants expected Google's profits to be greater than $1.6 billion for the third quarter.
B) market participants expected Google's profits to be less than $1.6 billion for the third quarter.
C) the stock market is not an efficient market.
D) market participants have adaptive expectations.
A
Economics
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