An Example of Financially Irrational Behavior Is

question 47

Multiple Choice

An example of financially irrational behavior is:

• A) gambling in Las Vegas.
• B) when a firm announces an increase in earnings and the stock price enjoys three days of large abnormal returns.
• C) when a firm announces an increase in earnings and the stock price enjoys an immediate surge in value which is captured in one day.
• D) Both gambling in Las Vegas; and when a firm announces an increase in earnings and the stock price enjoys three days of large abnormal returns.
• E) Both gambling in Las Vegas; and when a firm announces an increase in earnings and the stock price enjoys an immediate surge in value which is captured in one day.

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