Which One of the Following Statements Is Correct

question 2

Multiple Choice

Which one of the following statements is correct?

• A)The weekend effect states that security prices tend to rise between Friday afternoon and Monday morning.
• B)The market responds immediately to reflect the information contained in quarterly earnings reports.
• C)Low P/E stocks tend to outperform high P/E stocks on a risk-adjusted basis.
• D)The market fully anticipates the information contained in an earnings announcement prior to the actual announcement.

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Definitions:

Factory Plant

A facility where industrial or manufacturing processes occur, often including buildings and machinery.

Factory Overhead

Costs incurred in the production process that cannot be directly linked to specific products, such as maintenance, utilities, and salaried personnel.

Product Cost

An aggregate measure of the total costs involved in creating a product, including direct, indirect, and overhead costs.

Vice President

An executive or senior officer in a business or organization, typically reporting to the president or CEO, with specific responsibilities that vary by the entity.