According to Results by Seyhun the Main Reason Why Investors

question 3

Multiple Choice

According to results by Seyhun the main reason why investors cannot earn excess returns by following inside trades after they become public is ______________.

• A) risk premium
• B) transaction costs
• C) the SEC late disclosure rule
• D) the stock reversal effect

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Definitions:

Close Contacts

Individuals with whom one has strong relational ties, often characterized by frequent interaction and emotional closeness.

Grapevine

An informal communication network within an organization, which is not officially sanctioned but plays a crucial role in the circulation of information.

Single Strand Chains

Polymers or molecules that consist of a single linear sequence of units or monomers, not branched or networked.

Lowest Accuracy

The measurement indicating the least precision or correctness in the performance of an action, task, or prediction.