Assumption — XAT Previous-Year Questions
1 previous-year question on Assumption from XAT, with full solutions. Practise free — check answers as you go; sign in to save your progress.
Assumption · XAT PYQs
Read the following passage and answer the question that follows:
On Friday morning, Dieting supplement sales company Herbalife agreed to pay the US Federal Trade Commission a $200m fine. The FTC said Herbalife cheated hopeful salespeople out of hundreds of millions of dollars with a high-pressure multi-level marketing scheme.
Herbalife’s stock received an immediate 15% increase following the above news. The company also announced that it would hire a second former FTC commissioner in a press release describing the terms of the settlement.
Which of the following options would imply that the 15 percent increase in stock price is fair?