Suppose Apple Announces That Its Earnings for the Fourth Quarter

question 81

Multiple Choice

Suppose Apple announces that its earnings for the fourth quarter of 2011 rose to $2 billion.As a result of this announcement the price of Apple's stock does not change.The best explanation of this is

• A) market participants were expecting Apple's earnings to be greater than $2 billion.
• B) market participants expected Apple's earnings to be $2 billion.
• C) market participants expected Apple's earnings to be less than $2 billion.
• D) market participants have adaptive expectations.

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Definitions:

Pitch

Psychological experience of sound that corresponds to the frequency of the sound waves; higher frequencies are perceived as higher pitches.

Milgram's Obedience Study

A series of social psychology experiments conducted by Stanley Milgram, demonstrating individuals' willingness to obey authority figures, even to the extent of causing harm to others.

Participants

Individuals taking part in a study or research, often used to collect data or test hypotheses.

Self-Esteem

is the perception that an individual has about their own worth and value, often influencing their confidence and behaviors.