Then [D1] Has a Value of (Approximately)

question 58

Multiple Choice

Then [d1] has a value of (approximately) :

• A) 0.3
• B) 0.7
• C) -0.7
• D) 0.5

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Definitions:

Indexed

A strategy or financial instrument that is designed to track a specified basket of stocks or index, aiming to mirror its performance.

Cumulative Abnormal Returns

The aggregate difference in an asset’s observed versus expected returns over a specific timeframe, often used to assess impact of an event.

Takeover Announcement

A public declaration that a company intends to acquire another company, often triggering changes in the stock prices of both companies involved.

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.