In an Efficient Market, Daily Abnormal Returns

question 23

Multiple Choice

In an efficient market, daily abnormal returns:

• A)are very volatile.
• B)reflect news within the past week.
• C)reflect news since the prior trading day.
• D)remain constant.
• E)do not exist.

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Definitions:

Novation

The act of replacing one obligation with a new one, extinguishing the original obligation.

Ratification

Ratification is the formal approval or confirmation of an action or agreement, often used in the context of treaties, contracts, or laws.

Promoters

Individuals or companies responsible for establishing a corporation or business venture, including raising capital and completing legal formalities.

Personal Liability

involves an individual's legal responsibility for debts or obligations, potentially affecting personal assets.