What Is an Event Study

question 69

Essay

What is an event study
It is a test of what form of market efficiency
Discuss the process of conducting an event study, including the best variable(s) to observe as tests of market efficiency.

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Definitions:

Beginning Inventory

The value of all goods available for sale at the start of an accounting period.

Net Income

The net income of a business following the subtraction of all costs, taxes, and operational expenses from its revenue.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life, resulting in a constant annual expense.

Journal Entry

A record in accounting that documents a business transaction and its effect on various accounts, used to keep track of financial events by debits and credits.