Which of the Following Statements Is True in Regard to the Results

question 1

Multiple Choice

Which of the following statements is true in regard to the results obtained by capital market research?

• A) The relationship between earnings announcements and share price movements is inversely related to the size of the entity.
• B) Earnings announcements have a greater impact on the share prices of larger firms than on smaller firms.
• C) Compared to US markets, the Australian market has larger adjustments during the year with slower adjustments at earnings announcement.
• D) Share prices remain the same if investors 'fixate' on reported earnings without considering the relative magnitudes of cash and accrual components.

---

Definitions:

Binge Drink

The consumption of an excessive amount of alcohol in a short period, typically defined as consuming five or more drinks for men, or four or more for women, within about two hours.

Abuse Alcohol

The harmful use of alcohol that leads to health problems, social issues, and psychological disorders.

Prohibition

A period in history, particularly in the United States (1920-1933), when the production, importation, transportation, and sale of alcohol were banned.

Civil War

An internal conflict within a country between differing factions, states, or governments, often characterized by intense military engagements and significant casualties.