How Are Abnormal Returns Defined

question 50

Multiple Choice

How are abnormal returns defined?

• A)Positive return.
• B)Returns in excess of the risk-free rate.
• C)Returns in excess of the market return.
• D)Returns in excess of the risk-adjusted expected return.

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Definitions:

Non-price Competition

A marketing strategy where a company tries to distinguish its product or service from competing products based on attributes other than price.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the competitiveness of a market. It sums the squares of the market shares of all firms in the industry.

Industry

A group of companies that produce similar products or services, often characterized by shared markets, competition, and regulations.

Industry Concentration Ratio

A measure used to determine the extent of market control held by the largest companies within an industry, often indicating the level of competition.