Which one of the following is the best example of an announcement that is most apt to result in an unexpected return?
A) A news bulletin that the anticipated layoffs by a firm will occur as expected on December 1
B) Announcement that the CFO of the firm is retiring June as previously announced
C) Announcement that a firm will continue its practice of paying a $3 a share annual dividend
D) Statement by a firm that it has just discovered a manufacturing defect and is recalling its product
E) The verification by senior management that the firm is being acquired as had been rumored

Question

Which one of the following is the best example of an announcement that is most apt to result in an unexpected return?
A) A news bulletin that the anticipated layoffs by a firm will occur as expected on December 1 
B) Announcement that the CFO of the firm is retiring June as previously announced 
C) Announcement that a firm will continue its practice of paying a $3 a share annual dividend 
D) Statement by a firm that it has just discovered a manufacturing defect and is recalling its product 
E) The verification by senior management that the firm is being acquired as had been rumored

Quizplus · Accepted Answer

The announcement that the firm has discovered a manufacturing defect and is recalling its product is most apt to result in an unexpected return because it implies that the company may have to incur a significant cost to rectify the issue, potentially affecting its profits and revenue. This unexpected development may also negatively impact the company's reputation and stock prices.

Which One of the Following Is the Best Example of an Announcement