Suppose Apple Announces That Its Earnings for the Fourth Quarter

question 85

Multiple Choice

Suppose Apple announces that its earnings for the fourth quarter of 2016 rose to $2 billion.As a result of this announcement the price of Apple's stock does not change.The best explanation of this is

• A) market participants were expecting Apple's earnings to be greater than $2 billion.
• B) market participants expected Apple's earnings to be $2 billion.
• C) market participants expected Apple's earnings to be less than $2 billion.
• D) market participants have adaptive expectations.

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Definitions:

Specific Phobia

An irrational fear and avoidance of a particular object, situation, or activity that is generally not harmful.

Social Anxiety Disorder

A long-term psychological disorder where engaging in social interactions triggers unreasonable fear and anxiety.

Narrow or Broad

Refers to the scope or extent of something, which can be limited and specific (narrow) or wide and inclusive (broad).

Acquired or Lifelong

Terms describing whether a condition or trait was developed over time (acquired) or present from birth (lifelong).