How Should Cumulative Abnormal Returns React in an Efficient Market

question 41

Multiple Choice

How should cumulative abnormal returns react in an efficient market?

• A) relatively constant, sharp break, relatively constant
• B) relatively constant with no breaks
• C) steadily increasing
• D) steadily decreasing
• E) remain constant at zero

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Definitions:

Kinetic Energy

Kinetic energy is the energy that an object possesses due to its motion, calculated as one-half the mass of the object times the velocity squared.

High Versus Low

A comparative context often used to differentiate between two extremes, such as temperature, pressure, elevation, or density.

Total Amount

The complete quantity or sum of all the parts or elements present in a given content or composition.

Growth Time

The period required for an organism, cell, or organ to grow to its full size or for a population to double.