Market reactions to quarterly earning are always immediate in nature because the quarterly earnings are not discounted in the price before they are announced, so generally they are a new kind of information to the market and the reaction is immediate.
Rest of the given statements are false because there is no trend like stock price will rise from Friday close to Monday open and stock price never fully anticipate the earning in advance and High P/E Stocks does not tend to outperform the low P/E even after adjustment for risk.
So the correct statement would be statement( b).
And the correct answer would be option (B)
Which of the following is correct? Typically, stock prices rise from Friday's close to Monday's open,...
MATCHING Place the letter from the list below in front of the correct item that matches. a. a company's distribution of its profits in the form of cash or stock to its shareholders b. date on which the board of directors announces the amount of the dividend, the record date and the payment date c. date on which the stock goes up, meaning it begins trading in the secondary market without dividend d. legal agreement a stockholder signs to allow...