The Abnormal Return in an Event Study Is Described as The

question 45

Multiple Choice

The abnormal return in an event study is described as the:

• A)total return earned on a security on the day of an announcement.
• B)daily return on a security minus the daily return on the overall market.
• C)average return on a security for the 7-day period surrounding an announcement.
• D)average return on a security for the 7-day period surrounding an announcement minus the average return on the security for the past year.
• E)daily return on a security on the announcement date minus the risk-free rate of return.

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Definitions:

Suicide

The act of intentionally causing one's own death.

Criminal Activity

Actions that involve conduct deemed illegal by law, potentially leading to prosecution and punishment.

Working-Class

A social group consisting of people employed in low-paying wage jobs or manual labor.

Merton

Refers to Robert K. Merton, an influential American sociologist known for his theories on social structure, anomie, and the sociology of science.