Which one of the following is the best example of an event related to an expected return?
A)an announcement that a firm will meet its sales projections
B)a GDP growth rate that surpassed predictions
C)a market decline due to increased tensions in the world
D)a news release that a firm is going to be acquired at a premium
E)a sudden increase in the inflation rate

Question

Quizplus · Accepted Answer

An announcement that a firm will meet its sales projections is an event related to an expected return as it suggests that the company is performing as predicted or better, which could lead to higher returns for investors. The other options are either unrelated to returns or involve unexpected events that could potentially cause a change in returns.

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