Question #31
Reading: Reading 39 Economics and Investment Markets
PDF File: Reading 39 Economics and Investment Markets.pdf
Page: 10
Status: Unattempted
Correct Answer: B
Question
Market values of assets are most likely to be affected when:
Answer Choices:
A. New information reveals that the market’s expectations about earnings were accurate
B. New information confirms the market's expectations of future earnings
C. New information reveals that the market’s expectations about earnings were inaccurate
Explanation
Market values change when new information differs from expectations that are currently
priced in.