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 $200 million 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?
Select an option to reveal the answer and explanation
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