Which of the Following Is $\underline{not}$ A Possible Cause of Post-Earnings-Announcement Drift?
A)Financial Analysts Over-React to Post-Earnings-Announcement

question 16

Multiple Choice

Which of the following is $\underline{not}$ a possible cause of post-earnings-announcement drift?

• A)Financial analysts over-react to fundamental signals stemming from securities.
• B)Shareholders do not distinguish well between the cash flow portions and the accrual portions of earnings.
• C)Financial analysts' forecast errors lead to incomplete security price adjustments.
• D)Transaction costs are too high relative to the potential gain that can be earned from the mispricing of the securities.

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