When a Firm Makes an Earnings Announcement That Is Different

question 45

Multiple Choice

When a firm makes an earnings announcement that is different than what the analysts expected the market price of the firm's stock adjusts immediately.This is evidence consistent with markets being ____ efficient but not ____ efficient.

• A) weak-form;strong-form
• B) weak-form;semistrong-form
• C) strong-form;semistrong-form
• D) semistrong-form;strong-form

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Definitions:

Vibrating

Motion back and forth or up and down in rapid, often minute, movements.

Stress Hormones

Chemical substances released in the body in response to stress, such as cortisol, which help the body manage stress but can cause health issues if chronic.

Epigenetic Marks

Chemical modifications to DNA and histone proteins that affect gene expression without altering the DNA sequence itself.

Smoking

The act of inhaling and exhaling the smoke of tobacco or other substances, often associated with health risks.