Some Studies Have Attempted to Determine Whether It Is Possible

question 8

Multiple Choice

Some studies have attempted to determine whether it is possible to predict future returns for a stock based on publicly available quarterly earnings reports. The results of these studies indicate

• A) that stock prices adjust to reflect quarterly earnings reports.
• B) that stock prices do not adjust to reflect quarterly earnings reports.
• C) support for the semi-strong EMH.
• D) that stock prices adjust if earnings reports are released in January.
• E) that stock prices do not adjust if earnings reports are released in January.

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Definitions:

Trait Approach

A theory in psychology that suggests individual personalities are composed of broad dispositions, or traits, which influence behavior.

Fiedler's Contingency Theory

A leadership theory proposing that effective group performance depends on the proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control to the leader.

Path-Goal Theory

A leadership theory that suggests leaders should adjust their leadership style based on the needs of their followers to help them achieve their goals.

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people within organizational settings.