Which One of the Following Statements Related to Unexpected Returns

question 45

Multiple Choice

Which one of the following statements related to unexpected returns is correct?

• A) All announcements by a firm affect that firm's unexpected returns.
• B) Unexpected returns over time have a negative effect on the total return of a firm.
• C) Unexpected returns are relatively predictable in the short-term.
• D) Unexpected returns generally cause the actual return to vary significantly from the expected return over the long-term.
• E) Unexpected returns can be either positive or negative in the short term but tend to be zero over the long-term.

---

Definitions:

Imines

Chemical compounds characterized by the presence of a carbon-nitrogen double bond, with the nitrogen atom connected to a hydrogen atom or an organic radical.

Reaction

A process in which substances interact to form one or more new substances, characterized by changes in chemical or physical properties.