If the securities markets are efficient, the market's reaction to new information about a firm's value (such as an earnings announcement) should be:
a. gradual, as investors rationally deliberate the effect of the information on the stock's value.
b. immediate and unbiased.
c. slow or fast, depending on the amount of ‘surprise' contained in the new information.
d. negligible (the information would have already been impounded into the firm's stock price).
B
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An authority which is created by principal's own words is called
A. direct authority. B. indirect authority. C. apparent authority. D. express authority.
Which of the following statements does not pertain to non-comparative scales?
A) Noncomparative scales are often referred to as monadic scales. B) Respondents using a non-comparative scale employ whatever rating standard seems appropriate. C) Data must be interpreted in relative terms and have only ordinal or rank order properties. D) Non-comparative techniques consist of continuous and itemized rating scales.