Two Weeks Ago Ace Electronics Announced That It Had Developed

question 63

Multiple Choice

Two weeks ago Ace Electronics announced that it had developed a new chip design which was being considered by major companies for use in future smart phone development.At the close of trading the day before the announcement,Ace common stock closed at $20.On the day following the announcement,Ace closed at $21.Two days after the announcement the stock closed at $22.50.Four days after the announcement the stock traded at $23.Last week,Ace stock traded at $26,a level it has maintained since then.This is an example of a(n) :

• A)over-reaction and correction.
• B)underpricing.
• C)delayed reaction.
• D)pre-activity action.
• E)efficient market reaction.

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Definitions:

Antecedent

An event or environment that triggers a response or behavior, often used in the study of behavior and learning.

Negative Reinforcer

A stimulus whose removal following a behavior increases the likelihood of that behavior being repeated in the future.

Positive Reinforcer

Any stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated in the future.

Punisher

A stimulus or event that follows a behavior and decreases the likelihood of that behavior occurring in the future.