Event Studies Attempt to Determine

question 56

Multiple Choice

Event studies attempt to determine:

• A)the influence of information released to the market on stock prices in days surrounding the information's release.
• B)if the market is at least weak form efficient.
• C)whether the market is semi strong or strong form efficient.
• D)the correlation between the returns on two diverse securities.
• E)the optimal time to release new information to the public.

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Definitions:

Unanimous

In full agreement; when all members of a group fully agree on a decision or opinion.

Conversion Effect

When minority influence brings about a sudden and dramatic internal and private change in the attitudes of a majority.

Moscovici

Refers to Serge Moscovici, a French social psychologist known for his work on social influence and the theory of social representations.

Private Change

Alterations in personal beliefs, attitudes, or behaviors that are influenced by internal factors or personal reflection, not necessarily observable by others.