The Term Information Content Effect Refers to The

question 147

Multiple Choice

The term information content effect refers to the:

• A) Effect by the market to a firm's bankruptcy announcement.
• B) Types of investors that are attracted to a stock because of the related tax effects.
• C) Market's reaction to a change in the dividend payout.
• D) Way in which shareholders are affected by a corporate reorganization.
• E) Manner in which a stock dividend changes the equity accounts of the issuer.

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Definitions:

Life Expectancy

The average number of years a person or organism is expected to live, based on the statistical analysis of a particular population.

Production Process

The method or sequence of operations involved in the production and manufacturing of items.

Two-tailed Hypothesis Test

A statistical test that considers both directions of the effect, testing for the possibility of an effect in both directions from the null hypothesis.

Test Statistic

A calculated value from sample data used to make a decision about the truth of a hypothesis in statistical hypothesis testing.