Which One of the Following Statements Is Correct

question 2

Multiple Choice

Which one of the following statements is correct?

• A)The weekend effect states that security prices tend to rise between Friday afternoon and Monday morning.
• B)The market responds immediately to reflect the information contained in quarterly earnings reports.
• C)Low P/E stocks tend to outperform high P/E stocks on a risk-adjusted basis.
• D)The market fully anticipates the information contained in an earnings announcement prior to the actual announcement.

---

Definitions:

Process

A series of actions or steps taken in order to achieve a particular end.

Innate

describes traits, behaviors, or abilities that are present from birth and not acquired through learning or experience.

Imprinting

A rapid form of learning occurring at a particular life stage wherein a young animal forms attachments to or preferences for specific objects or individuals.

Sensitive Period

A sensitive period is a specific time in an individual's development when they are more responsive to certain experiences or learning opportunities.