The Abnormal Return in an Event Study Is Described as the

question 38

Multiple Choice

The abnormal return in an event study is described as the

• A)actual return on a security minus the market rate of return on the same date.
• B)total return earned by a security on the date of an announcement affecting that security.
• C)total return earned on a security for the 7-day period commencing 3 days prior to an announcement affecting that security.
• D)change in market value of a security on the day of an announcement affecting that security.
• E)any change in the market price of a security that exceeds 5 percent over a 7-day period.

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Definitions:

Genetic Vulnerabilities

Predispositions or susceptibilities to certain diseases or conditions based on inherited genetic characteristics.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks and ongoing concerns about having more attacks.

Agoraphobia

A anxiety disorder characterized by an intense fear of being in places where escape might be difficult or help might not be available, leading to avoidance of such situations.

Social Anxiety Disorder

A mental health condition characterized by an intense fear or anxiety in one or more social situations, leading to significant distress and impaired ability to function in daily life.