The Clientele Effect Is Concerned With

question 94

Multiple Choice

The clientele effect is concerned with:

• A) investor behaviour and attitudes towards dividends.
• B) the relationship between the stockbroker and his/her client.
• C) the stability of dividends.
• D) the effect of earnings on the client.

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Definitions:

Positive Earnings Surprises

Occurs when a company's reported earnings exceed analysts' expectations.

Abnormal Return

The difference between the actual return of an investment and the expected return given its risk profile and market performance.

Price Drift

The slow and incremental movement in the price of an asset, reflecting gradual changes in investors' valuation over time.

Contrarian Approach

An investment strategy that involves going against prevailing market trends or sentiments, buying underperforming assets, and selling when they perform well.