Which One of the Following Statements Is Correct

question 103

Multiple Choice

Which one of the following statements is correct?

• A) The unexpected return is always negative.
• B) The expected return minus the unexpected return is equal to the total return.
• C) Over time, the average return is equal to the unexpected return.
• D) The expected return includes the surprise portion of news announcements.
• E) Over time, the average unexpected return will be zero.

---

Definitions:

Variables

Factors or conditions that can vary or change within a research or experimental setup, affecting outcomes or results.

Positive Correlation

A relationship between two variables in which both variables move in the same direction.

Decreases

Refers to a reduction or decline in the magnitude or value of a certain variable or quantity.

Decreases

A term indicating a reduction or decline in value, quantity, or extent.