Which One of the Following Statements Related to Unexpected Returns

question 45

Multiple Choice

Which one of the following statements related to unexpected returns is correct?

• A) All announcements by a firm affect that firm's unexpected returns.
• B) Unexpected returns over time have a negative effect on the total return of a firm.
• C) Unexpected returns are relatively predictable in the short-term.
• D) Unexpected returns generally cause the actual return to vary significantly from the expected return over the long-term.
• E) Unexpected returns can be either positive or negative in the short term but tend to be zero over the long-term.

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Definitions:

Quality Cost Report

A financial report that details the costs associated with preventing, detecting, and dealing with defects in products.

Manufacturing Cycle Efficiency

A metric that measures the efficiency of a manufacturing process by dividing the value-added production time by the total cycle time.

Production Data

Information related to the quantity, quality, cost, and efficiency of the production process in a manufacturing company.

Prevention Cost

Expenses incurred to avoid defects in products or services, including costs related to quality training and product design improvements.