Evidence shows that mandated disclosure:

A) increases risks associated with equity investments
B) decreases risks associated with equity investments
C) does not change risks associated with equity investments
D) none of the above

Question

Evidence shows that mandated disclosure:

A) increases risks associated with equity investments
B) decreases risks associated with equity investments
C) does not change risks associated with equity investments
D) none of the above

Quizplus · Accepted Answer

Evidence does not support the view that mandated disclosure changes the returns or risk associated with equity investment.Subsequent studies have generally supported these findings,and in some cases have even shown that mandated disclosure reduces the risk-adjusted equity returns (Chow 1983).

Evidence Shows That Mandated Disclosure