Research has found that investors tend to react to earnings surprises
A)slowly,which illustrates conservatism.
B)immediately and fully on the day the information becomes public.
C)quickly and efficiently.
D)in the same manner whether they are positive or negative surprises.
E)always in a negative manner as they do not like any surprises.

Question

Quizplus · Accepted Answer

Investors often react slowly to earnings surprises due to conservatism, where they are reluctant to change their beliefs despite new information.

Research Has Found That Investors Tend to React to Earnings