Question

Which of the following statements is not supported by empirical evidence from capital market research? Group...

Which of the following statements is not supported by empirical evidence from capital market research?

Group of answer choices

a.Accounting earnings appear to have information content and to affect security prices.

b.Alternative accounting policies with no apparent direct or indirect cash flow consequences to the firm do not seem to affect security prices.

a.It assumes that individual securities are priced solely on unsystematic risk.

d. Accounting-based risk measures correlate with market risk measures, suggesting that accounting numbers are useful for risk assessment.

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Answer #1

Answer is option C. It assume that individuals security are priced solely on unsystematic risk.

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