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Which of These Is True with Respect to Information Transfer

Question 29

Multiple Choice

Which of these is true with respect to information transfer research?


A) The research is based on the premise that positive profits for one firm in an industry reflects improved conditions in that industry
B) The variance of abnormal returns for competing firms decreases when another firm in the same industry makes a profit announcement
C) There are significant price reactions by non-announcing firms to early announcers sales and profit changes
D) B and C only

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