Which of the Following Statements Does $\underline{not}$ Apply to the Study by Lev That Examined Earnings Numbers

question 58

Multiple Choice

Which of the following statements does $\underline{not}$ apply to the study by Lev that examined earnings numbers and stock returns?

• A)According to Lev, over time, the correlation between earnings numbers and stock returns has been low.
• B)Lev believed that earnings have very little explanatory power relative to changes in stock prices.
• C)Lev believed that one of the primary reasons for the level of correlation between earning and stock returns lies with the low quality of reported income numbers.
• D)The study's results contradicted those of the Ou and Penman study.

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Definitions:

Assertive Behavior

A communication style in which individuals state their opinions and feelings clearly and directly while respecting the rights and beliefs of others.

Aggressive Behavior

Actions or conduct that intends to cause harm or intimidate another individual, often manifesting physically or verbally.

Cooperative/Nonassertive

A behavioral style characterized by a willingness to work with others towards a common goal while often compromising one's own needs or desires.

Accommodating

Adapting one's actions or decisions to consider the needs or wishes of others, often at the expense of one's own preferences.