Studies of Negative Earnings Surprises Have Shown That There Is

question 20

Multiple Choice

Studies of negative earnings surprises have shown that there is

• A) a negative abnormal return on the day that negative earnings surprises are announced.
• B) a positive drift in the stock price on the days following the earnings surprise announcement.
• C) a negative drift in the stock price on the days following the earnings surprise announcement.
• D) a negative abnormal return on the day that negative earnings surprises are announced and a positive drift in the stock price on the days following the earnings surprise announcement.
• E) a negative abnormal return on the day that negative earnings surprises are announced and a negative drift in the stock price on the

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Definitions:

Dual Diagnosis

The condition in which an individual has a concomitant substance use disorder and another psychiatric disorder.

Multiaxial

Referring to an approach in psychology and psychiatry that assesses multiple dimensions of an individual's mental or behavioral condition.

Dopamine Hypothesis

A theory suggesting that the imbalance of dopamine levels in the brain may contribute to the symptoms of schizophrenia and other psychoses.

Diathesis-stress Theory

A theory in psychology that attributes behavior to an inherent susceptibility combined with stressors encountered in life.