In an Efficient Market, Ignoring Taxes and Time Value

question 41

Multiple Choice

In an efficient market, ignoring taxes and time value:

• A) the price of stock should decrease by the amount of the dividend immediately on declaration date.
• B) the price of stock should decrease by the amount of the dividend immediately on ex-dividend date.
• C) the price of stock should increase by the amount of the dividend immediately on declaration date.
• D) the price of stock should increase by the amount of the dividend immediately on ex-dividend date.

---

Definitions:

Personality Development

The growth and development of a person’s character and personality traits through life experiences.

Internal Working Model

A cognitive framework comprising mental representations for understanding the world, self, and others, developed from early attachment experiences.

Emotion Regulation

The processes by which individuals influence which emotions they have, when they have them, and how they experience and express them.

Separation Protest

An emotional and behavioral reaction, often observed in infants and young children, due to separation from their primary caregivers.