Research Has Found That Investors Tend to React to Earnings

question 26

Multiple Choice

Research has found that investors tend to react to earnings surprises

• A)slowly,which illustrates conservatism.
• B)immediately and fully on the day the information becomes public.
• C)quickly and efficiently.
• D)in the same manner whether they are positive or negative surprises.
• E)always in a negative manner as they do not like any surprises.

Understand the importance of community management and crafting effective business communications in the blogging and microblogging context.

Understand the business uses and non-uses of microblogging.

Know the internal and proprietary communications systems used by companies.

Identify and practice using components of a wiki, such as the Sandbox.

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Definitions:

Opportunity Cost

Forgoing the chance to gain from other possibilities by selecting one option.

Consumer Behavior

The study of how individuals, groups, and organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Marginal Utility

The added value or satisfaction experienced upon consuming an additional unit of a good or service.

Diamond-Water Paradox

A paradox highlighting the discrepancy between the high value of non-essential items, like diamonds, and the low value of essential items, like water, despite their utility.