If Expected Earnings of a Company Are Revised Upward and All

question 29

Multiple Choice

If expected earnings of a company are revised upward and all else is equal, the price of a stock will

• A)fall.
• B)rise.
• C)remain unchanged.
• D)adjust to reflect a lower ratio of price to (current)earnings.

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Definitions:

Evidence

Information or facts that are used to support the validity of an argument or hypothesis.

Archetype

In psychology, particularly Jungian theory, archetypes are universally understood symbols, terms, or behaviors inherent in the collective unconscious.

Behavior

Observable actions or responses of individuals or groups, which can be influenced by internal or external factors.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.