The Cumulative Abnormal Return for a Merger or Acquisition Can

question 27

True/False

The cumulative abnormal return for a merger or acquisition can be positive or negative depending on whether the stock in question performs better or worse than what was expected without an acquisition.

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values are close to the mean.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of values.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured to see if it is affected by changes in another variable (the independent variable).