Which of the Following Does NOT Correctly Complete This Sentence

question 262

Multiple Choice

Which of the following does NOT correctly complete this sentence: In general, the link between an information announcement and the stock price is that ____________________.

• A) The expected stock return will change if the announcement contains a surprise component.
• B) The stock price will not change if the announcement provided only anticipated information.
• C) Only announcements that have already been discounted will affect the stock price.
• D) In order for the price of the stock to change, the announcement must be relevant to that particular stock and must be unanticipated.
• E) If markets are efficient in the semi-strong form, then the market will react rapidly to the new information.

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Definitions:

Erik Erikson's Theory

A psychoanalytic theory of psychological development comprising eight stages from infancy to adulthood, with each stage presenting a crisis that must be resolved.

Sense Of Guilt

A psychological state that arises from the awareness of having done something wrong or harmed someone, leading to feelings of remorse and the desire to make amends.

Inevitable Crisis

A situation or period of intense difficulty or danger that is unavoidable or certain to happen.

Externalize

To project one's own feelings, thoughts, or responses onto someone or something else.