ACPharmaceutical Announced FDA Approval for a New Drug on October

question 75

Multiple Choice

A.C.Pharmaceutical announced FDA approval for a new drug on October 12^th.X.Y.Drug Co.announced approval for its new drug on October 14^th.No other information was released that would affect returns over the period.What is the combined cumulative abnormal return for the 5 day period commencing 2 days prior to the approval announcement date? Use the following data to answer this question.No trading occurred on October 15^th and 16^th.

• A) 0.6 percent
• B) 1.0 percent
• C) 1.2 percent
• D) 1.4 percent
• E) 1.6 percent

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Definitions:

Output Measures

Metrics or indicators used to assess the performance, productivity, or quality of a product or process.

Individual Interaction

Involves the communication or exchange between individuals, often considered in the context of social, economic, or professional relationships.

Not-Invented-Here Problem

The tendency of organizations or teams to avoid using or buying products, research, or knowledge from outside sources because they were not created internally.

Hoarding Of Expertise

The practice of keeping knowledge, skills, or information confined to an individual or a limited group, preventing wider dissemination and use.