An Example of Financially Irrational Behavior Is

Multiple Choice

An example of financially irrational behavior is:

A) gambling in Las Vegas.
B) when a firm announces an increase in earnings and the stock price enjoys an immediate surge in value which is captured in one day.
C) when a firm announces an increase in earnings and the stock price enjoys three days of large abnormal returns.
D) Both A and B.
E) Both A and C.