LJP Corporation Just Announced Yesterday That It Would Undertake an International

question 43

Multiple Choice

LJP Corporation just announced yesterday that it would undertake an international joint venture. You observe that LJP had an abnormal return of 3% yesterday. This suggests that

• A) the market is not efficient.
• B) LJP stock will probably rise in value again tomorrow.
• C) investors view the international joint venture as bad news.
• D) investors view the international joint venture as good news.
• E) earnings are expected to decrease next quarter.

---

Definitions:

Experiments

A procedure undertaken to test a hypothesis, typically involving the manipulation of variables to observe the effect on some behavior or condition.

Sample

A subset of individuals or observations drawn from a population used for statistical analysis, intended to represent the population from which it is drawn.

Population

The entire group of individuals or instances about whom the study is to make inferences, in contrast to a sample drawn from it for analysis.

Census

A systematic collection, analysis, and publication of data pertaining to the population and its components at a specific time.