An Example of Financially Irrational Behavior Is

question 52

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

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Definitions:

Hyperglycemia

High blood sugar.

Intense Thirst

A strong and persistent desire to drink fluids, often a symptom of dehydration or uncontrolled diabetes.

Myocardial Infarction

A heart attack that occurs when the blood flow to the heart is reduced as a result of blockage in the coronary arteries or their branches.

Chest Pain

A sensation of discomfort or pain in the chest, which can be a symptom of various conditions ranging from non-serious to life-threatening.