In an Efficient Market, Daily Abnormal Returns

question 14

Multiple Choice

In an efficient market, daily abnormal returns:

• A) are very volatile.
• B) tend to relate to news announcements made within the past 10 trading days.
• C) relate only to news announcements made during the past 2 trading days.
• D) relate only to news announcements made after the close of the previous trading day.
• E) exist only if non-public information is used for trading purposes.

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