Womack Focuses on Changes in Analysts' Recommendations and Finds That

question 26

Multiple Choice

Womack focuses on changes in analysts' recommendations and finds that

• A)positive changes are associated with decreased increased stock prices of about 5%, and positive changes result in average price decreases of 11%.
• B)positive changes are associated with increased stock prices of about 5%, and negative changes result in average price decreases of 11%.
• C)positive changes are associated with increased stock prices of about 11%, and negative changes result in average price decreases of 5%.
• D)negative changes are associated with increased stock prices of about 5%, and positive changes result in average price decreases of 11%.

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Definitions:

Tractor

A powerful vehicle designed primarily for agricultural use, to pull farm machinery and plough agricultural land.

Motorcycle

A two-wheeled motorized vehicle, widely used for both transportation and recreation.

Comparative Advantage

A principle that states a country should produce and export goods for which it has a lower opportunity cost compared to other countries.

Allocate Resources

The process of distributing available resources among various projects or business units.