Sometimes One Observes That the Price of a Company's Stock

question 1

Multiple Choice

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is

• A)clearly inconsistent with the efficient markets hypothesis.
• B)consistent with the efficient markets hypothesis if the earnings were not as high as anticipated.
• C)consistent with the efficient markets hypothesis if the earnings were not as low as anticipated.
• D)consistent with the efficient markets hypothesis if the favorable earnings were expected.

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Definitions:

Throughput Time

The total time taken from the start to the finish of a production process, including both processing and wait times.

Fill Orders

The process of completing customer requests for goods or services, involving tasks from accepting, processing, and delivering the order.

Delivery Cycle Time

The total time taken from the initiation of a process or order until its completion and delivery to the customer.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the ordered goods.