Womack focuses on changes in analysts' recommendations and finds that
A)positive changes are associated with decreased increased stock prices of about 5%, and positive changes result in average price decreases of 11%.
B)positive changes are associated with increased stock prices of about 5%, and negative changes result in average price decreases of 11%.
C)positive changes are associated with increased stock prices of about 11%, and negative changes result in average price decreases of 5%.
D)negative changes are associated with increased stock prices of about 5%, and positive changes result in average price decreases of 11%.

Question

Quizplus · Accepted Answer

Womack found that positive changes in analysts' recommendations were associated with an average increase in stock prices of about 5%. On the other hand, negative changes in recommendations were associated with an average decrease in stock prices of about 11%. Therefore, option B is the correct choice.

Womack Focuses on Changes in Analysts' Recommendations and Finds That