A Stock's ________ Measures the Stock's Return Relative to That

question 10

Multiple Choice

A stock's ________ measures the stock's return relative to that predicted based on its beta,at the time of some event.

• A)excessive abnormal return
• B)cumulative average return
• C)excessive predicted return
• D)cumulative abnormal return

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Definitions:

10% More

Indicates an increase or addition of ten percent to a given number or value.

7% Less

A reduction by seven percent from a previous amount or value.

Standard & Poor's 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Stock Index

A statistical measure that shows changes in the stock market by tracking selected stocks' prices.