Evaluate the following statements: (a) The price of a firms stock is a function of the expected

Question:

Evaluate the following statements:
(a) The price of a firm’s stock is a function of the expected earnings of that firm.
(b) Changes in the stock price result from surprises rather than realized expectations.
(c) If everyone had the same expectations no would be traded.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...