On the Date of Record the Share Price Drop Is

question 36

Multiple Choice

On the date of record the share price drop is:

• A)a full adjustment for the dividend payment.
• B)a partial adjustment for the dividend payment because of the tax effect.
• C)zero because it happens on ex-dividend date.
• D)zero because it happens on payment date.
• E)None of the above.

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Definitions:

F Test

A statistical test used to compare the variances between two populations, often as part of the analysis of variance (ANOVA) for comparing means among multiple groups.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

P-Value

The probability of observing data at least as extreme as the data observed, under the assumption that the null hypothesis is true.

F Statistic

A ratio used in statistical analysis to determine the variance between group means relative to the variance within groups, often used in ANOVA tests.