Which One of the Following Announcements Is Most Apt to Cause

question 31

Multiple Choice

Which one of the following announcements is most apt to cause the price of a firm's stock to increase?

• A)The firm met its quarterly earnings forecast.
• B)An unpopular CEO unexpectedly announced he is resigning effective immediately.
• C)A firm officially confirmed the rumors that it is merging with a competitor.
• D)The firm just lowered its projected earnings per share for next year.
• E)Analysts are expected to lower the firm's credit rating on its debt.

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Definitions:

Feared Stimulus

A specific object, situation, or activity that elicits a strong fear response due to conditioning or traumatic experiences.

Exposure

In psychology, a treatment method aimed at reducing fear and anxiety by gradually and repeatedly presenting the feared object or context without any danger.

Blisspoint

The optimal level of satisfaction or pleasure for a consumer, often used in food industry to describe the perfect balance of saltiness, sweetness, and fattiness.

Contingent Responses

Behaviors or actions that are performed in response to specific conditions or stimuli, often depending on the presence or absence of certain factors.