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.

Identify the role of sensory cues in retrieving memories.

Comprehend the significance of maintenance rehearsal and priming in memory retention and recall.

Understand the concept of memory schemas and their influence on perception and memory.

Differentiate between semantic, episodic, procedural, and prospective memory.

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Definitions:

Issuing Stock

The process by which a company releases its shares to the public or existing shareholders to raise capital.

Purchase Assets

The act of acquiring ownership or a controlling interest in physical or intangible items that have value, for operational or investment purposes.

Real Assets

Physical or tangible assets such as real estate, commodities, and natural resources.

Future Cash Flows

Projections of the amount of money that is expected to be generated by an investment in the future.