Shareholders Discount Many Corporate Announcements Because of Their Prior Expectations

question 16

Multiple Choice

Shareholders discount many corporate announcements because of their prior expectations.If an announcement causes the price to change it will mostly be driven by:

• A)the expected part of the announcement.
• B)market inefficiency.
• C)the unexpected part of the announcement.
• D)the systematic risk.
• E)None of the above.

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Definitions:

Inventories

Detailed lists of items, assets, or properties, typically used for tracking and management purposes in various contexts.

Figures

Quantitative data or statistical representation of information, commonly used in the analysis and communication of data.

Group Dynamics

the study of the behavioral relationships and interactions within a group.

Physical Arrangements

The way in which physical spaces are organized and structured in order to influence behavior and interaction.