A company's stock price increases after announcing a major partnership. What is the probable cause of this increase?
Q1. A company's stock price increases after announcing a major partnership. What is the probable cause of this increase?
Answer: Expected increase in revenue from the partnership
Explanation: Anticipated revenue growth directly affects stock prices. Expected increase in revenue from the partnership is correct because it matches what the question requires. USAT, HAT and MDCAT analytical sections repeat this pattern.