Over the last five years, Eagle Trust Bank has seen the number of its

Over the last five years, Eagle Trust Bank has seen the number of its retail customer accounts drop by over 40 percent. Over this same period, the price of Eagle Trust stock has increased by more than 80 percent. This phenomenon has perplexed certain investors, who believe that a bank’s stock should drop if its number of customer accounts drops.

Which of the following, if true over the last five years, best accounts for the observed movement in the price of Eagle Trust stock?

A. Two years ago Eagle Trust was investigated by the Securities and Exchange Commission for accounting irregularities, but last year the company was cleared of all charges.

B. Eagle Trust recently implemented a highly publicized program for no-fee home mortgages.

C. Eagle Trust is in the process of switching its customer base from retail customers to commercial customers, which now account for over 75 percent of the bank’ revenues.

D. There have been many aggressive new mentrants into the retail customer banking business over the last five years.

E. Eagle Trust is known for offering one of the best employee benefits packages in the industry.

Source: McGraw-Hill's GMAT (5th)