If the Expected Future Earnings of a Company Goes Up

question 158

Multiple Choice

If the expected future earnings of a company goes up, you would expect the price of its stock to

• A) rise.
• B) fall.
• C) be unaffected.
• D) fall to zero.

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Definitions:

Hypochondriasis

A psychological disorder characterized by excessive worrying over having a serious illness, despite medical reassurance.

Normal Physical Sensations

Ordinary or typical bodily feelings that arise from everyday activities, conditions, or responses to the external environment.

Dreaded Disease

A term referring to a particularly feared illness or condition, often because of its severity, painfulness, or the lack of a cure.

Persistence

The sustained effort and determination to achieve goals despite obstacles, difficulties, or discouragement.