Evidence on Stock Prices Finds That the Sudden Death of a Chief

question 53

Multiple Choice

Evidence on stock prices finds that the sudden death of a chief executive officer causes stock prices to fall and the sudden death of an active founding chief executive officer causes stock price to rise.This contrary evidence happens because:

• A)markets are inefficient and unsure of the real value of the events.
• B)death is inevitable and market prices are random.
• C)things simply happen.
• D)the value of the founding executive was a negative to the firm.
• E)None of the above.

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Definitions:

Presumed Innocent

The principle that an individual is considered innocent until proven guilty in a court of law.

Commercial Property

Real estate property that is used for business activities, such as offices, retail spaces, warehouses, and industrial buildings.

Residential Property

Real estate that is used for housing or dwelling purposes.

Special Deterrence

A principle in criminal justice aiming to prevent a particular offender from committing future crimes by imposing a penalty for their actions.