Shareholders Discount Many Corporate Announcements Because of Their Prior Expectations

question 8

Multiple Choice

Shareholders discount many corporate announcements because of their prior expectations.If an announcement causes the price to change it will mostly be driven by:

• A)the expected part of the announcement.
• B)market inefficiency.
• C)the unexpected part of the announcement.
• D)the systematic risk.
• E)None of the above.

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Definitions:

Prospectus

A document giving details about a company and its business activities, used to inform potential investors.

Gender Roles

The set of societal norms dictating what types of behaviors are generally considered acceptable, appropriate, or desirable for people based on their actual or perceived sex.

Heterosexuals

Individuals who are sexually attracted to people of the opposite sex.

Egalitarian

Pertaining to the belief in or practice of equal rights and opportunities for all people, often within a social, political, or economic context.