Which One of the Following Announcements Is Most Apt to Cause

question 31

Multiple Choice

Which one of the following announcements is most apt to cause the price of a firm's stock to increase?

• A)The firm met its quarterly earnings forecast.
• B)An unpopular CEO unexpectedly announced he is resigning effective immediately.
• C)A firm officially confirmed the rumors that it is merging with a competitor.
• D)The firm just lowered its projected earnings per share for next year.
• E)Analysts are expected to lower the firm's credit rating on its debt.

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Definitions:

Vivid

Producing powerful feelings or strong, clear images in the mind.

Schema-Based Memory

Memory model suggesting that what we remember is influenced by our knowledge structure or schemas—frameworks that help us organize and interpret information.

Fragment-Completion Task

A cognitive task where individuals are asked to complete words from fragments, used to study memory and recognition.

Suggestive Questioning

A method of questioning that implies or encourages the desired answer, often leading to biased or manipulated responses.