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A company who is a lessee adopted the new lease standard which resulted in a change in the net profit and balance sheet items. All

"A company who is a lessee adopted the new lease standard which resulted in a change in the net profit and balance sheet items. All of the following are true, except:"

The mechanistic hypothesis suggests that investors will not adjust their price expectations for the company.

The mechanistic hypothesis suggests that investors will adjust their price expectations for the company.

The efficient market hypothesis (semi-strong form) predicts that investors will not change their price expectations for the company.

"The efficient market hypothesis (semi-strong form) predicts that investors will realise that no real change has occurred, just a change in accounting policy."

Normative theories:

explain why people behave in certain ways.

prescribe what should be the case based on a specific objective.

are based on what is happening in the world.

predicts unobserved phenomena.

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