The Abnormal Return on a Security for a Particular Day

question 37

Multiple Choice

The abnormal return on a security for a particular day can be estimated by the equation:

• A) AR = R - R_m.
• B) AR = R_m- R.
• C) AR = R_m- R_f.
• D) AR = R - R_f.
• E) AR = R_f - R_m.

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Definitions:

Formalization

The extent to which organizations use rules, procedures, and structured communication to govern behaviors and operations.

Centralization

The concentration of decision-making authority at higher levels within an organization.

Specialization

The process of focusing on a specific area of knowledge or skill, often to increase efficiency or expertise.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together diverse parts of an organization.