Music Doctors Just Announced Yesterday That Its First Quarter Sales

question 36

Multiple Choice

Music Doctors just announced yesterday that its first quarter sales were 35% higher than last year's first quarter.You observe that Music Doctors had an abnormal return of -2% yesterday.This suggests that

• A)the market is not efficient.
• B)Music Doctors stock will probably rise in value tomorrow.
• C)investors expected the sales increase to be larger than what was actually announced.
• D)investors expected the sales increase to be smaller than what was actually announced.

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Definitions:

Organization

A structured group of individuals working together towards shared objectives or goals, often characterized by a hierarchical division of labor.

Charismatic Authority

A form of leadership where followers are drawn to the leader's personal qualities and the belief in his or her extraordinary powers, characteristics, or ideas.

Routinized

Refers to the process through which actions or procedures become regular, uniform, and methodical, often resulting in increased predictability and efficiency.

Rational Authority

A form of leadership where authority is based on legal rationality, institutional procedures, and a belief in the legality of enacted rules.