Announcement=Expected part Surprise The expected part of any announcement is part of the information the market uses to form the expectation of the return on the stock The surprise is the news that influences the unanticipated return on the stock When we speak of news then we refer to the surprise part of any announcement and not the portion that the market has expected and therefore e has already discounted The unanticipated part of return---that portion resulting from surprise---is the true risk of any InvestmentAnnouncement = Expected part + Surprise – The expected part of any announcement is part of the information the market uses to form the expectation of the return on the stock. – The surprise is the news that influences the unanticipated return on the stock. When we speak of news, then, we refer to the surprise part of any announcement and not the portion that the market has expected and therefore has already discounted. The unanticipated part of return---that portion resulting from surprise---is the true risk of any investment