Which of the Following Is/are Way(s )That Short-Term Market Deviations

question 21

Multiple Choice

Which of the following is/are way(s ) that short-term market deviations from a particular company's intrinsic value might play a role in the decisions of the managers?
I.When making acquisitions,a manager might pay with shares instead of cash when the stock market overprices the shares relative to intrinsic value.
II.If the multiples in a particular sector are too high,a manager of a firm that owns a subsidiary in that industry might consider divesting the subsidiary.
III.If the multiples in a particular sector are too low,a manager of a firm that owns a subsidiary in that industry might consider divesting the subsidiary.
IV.When making acquisitions,a manager might pay with cash instead of shares when the stock market overprices the shares relative to intrinsic value.

• A)I and II.
• B)I and III.
• C)III and IV.
• D)IV only.

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Definitions:

Trait Approach

A perspective in psychology that focuses on the identification and measurement of stable characteristics that differentiate individuals.

Psychotherapy

A therapeutic treatment process aimed at addressing mental health issues through psychological means rather than medical interventions.

Predicting Behavior

involves the use of various psychological theories and methodologies to forecast future actions of individuals or groups.

Henry Murray

An American psychologist known for his theory of personality and development of the Thematic Apperception Test.