Nicholas Manufacturing Just Announced Yesterday That Its Fourth Quarter Earnings

question 57

Multiple Choice

Nicholas Manufacturing just announced yesterday that its fourth quarter earnings will be 10% higher than last year's fourth quarter. Nicholas had an abnormal return of −1.2% yesterday. This suggests that

• A) the market is not efficient.
• B) Nicholas' stock will probably rise in value tomorrow.
• C) investors expected the earnings increase to be larger than what was actually announced.
• D) investors expected the earnings increase to be smaller than what was actually announced.
• E) earnings are expected to decrease next quarter.

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Definitions:

Split Custody

The children are divided between the parents either by sex or the children’s choice.

Joint Custody

Children divide their time between their parents, who share decisions about the children’s upbringing (sometimes called dual residence custody).

Co-Custody

An arrangement where two or more parties share legal and/or physical responsibility and care for a child or children.

Parental Conflict

Disagreements or disputes between parents, which can also involve tension and opposition.