Which of the following statements does not apply to the study by Lev that examined earnings numbers and stock returns?
a. According to Lev, over time, the correlation between earnings numbers and stock returns has been low.
b. Lev believed that earnings have very little explanatory power relative to changes in stock prices.
c. Lev believed that one of the primary reasons for the level of correlation between earning and stock returns lies with the low quality of reported income numbers.
d. The study’s results contradicted those of the Ou and Penman study.
ANSWER: D
You might also like to view...
All sales transactions generate immediate cash
Indicate whether the statement is true or false
When is the parol evidence rule used in contracts?
A) when a written confirmation has not been sent for an oral contract B) when the party against whom the enforcement of an oral contract is sought has not admitted of such a contract in pleadings C) when an oral modification is required in a written contract D) when there is a written statement that contradicts an agreed-on written contract
Diagnosis is the medical expert's explanation of the cause of symptoms.
Answer the following statement true (T) or false (F)
Which of the following is a type of damage award that may be granted by a court as a remedy for breach of contract:
a. compensatory b. expectancy c. liquidated d. nominal e. all of the other specific choices are correct