An Event Study Describes a Technique of Empirical Financial Research

question 32

Multiple Choice

An event study describes a technique of empirical financial research that

• A)enables an observer to assess the impact of a particular event on a firm's risk.
• B)enables an observer to assess the impact of a particular event on a firm's standard deviation.
• C)enables an observer to assess the impact of a particular event on a firm's stock price.
• D)enables an observer to assess the impact of a firm's return on risk of the market.

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Definitions:

Economic Efficiency

A condition in which a market or an economy utilizes resources in a way that maximizes the production of goods and services.

Supply-Elasticity Differences

Variations in how sensitive the quantity supplied of a good is to changes in its price across different markets or goods.

Productivity Differences

Variations in the efficiency of production processes or workers, impacting the output generated from a set amount of inputs.

Private Ownership

The legal right of individuals or corporations to own property and assets, distinguishing from public or state ownership.