Evidence on Stock Prices Finds That the Sudden Death of a Chief

question 59

Multiple Choice

Evidence on stock prices finds that the sudden death of a chief executive officer causes stock prices to fall and the sudden death of an active founding chief executive officer causes stock price to rise.This contrary evidence happens because:

• A)markets are inefficient and unsure of the real value of the events.
• B)death is inevitable and market prices are random.
• C)the value of the founding executive was a negative to the firm.
• D)things simply happen.
• E)None of the above.

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Definitions:

Theoretical Perspective

A specific viewpoint from which researchers explain and study phenomena, influencing the questions they ask and the methods they use.

Psychoanalytic

Relating to a theory and therapy based on the work of Sigmund Freud, emphasizing unconscious mental processes in explaining human thought and behavior.

Feeding

The process of consuming food to obtain nutrients necessary for health and growth.

Trust

A strong conviction in someone's or something's trustworthiness, truthfulness, capability, or durability.