Prior to the announcement of bad news earnings (a negative earnings surprise) ,stock returns exhibit

A) a negative drift downward.
B) no change in stock returns.
C) a negative drift downward followed by an immediate upward drift.
D) a positive drift upwarD.

Bad News Earnings

Reports of lower than expected earnings, often leading to a negative reaction in the stock market and a decrease in company’s share price.

Negative Earnings Surprise

An event where a company's reported earnings are below the expectations of analysts, often leading to a decline in its stock price.

Stock Returns

The income generated from the investment in shares, comprised of dividends received and capital gains or losses.