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.

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