The Abnormal Return in an Event Study Is Described as The

question 46

Multiple Choice

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

• A)actual return on a security minus the market rate of return on the same date.
• B)total return earned by a security on the date of an announcement affecting that security.
• C)total return earned on a security for the 7-day period commencing three days prior to an announcement affecting that security.
• D)change in market value of a security on the day of an announcement affecting that security.
• E)any change in the market price of a security that exceeds five percent over a 7-day period.

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Definitions:

Code of Ethics

A set of principles and standards that guides ethical professional conduct and decision making within an organization.

Ethical Tolerances

The degree to which behavior deviating from ethical norms is accepted or allowed within a group, organization, or society.

Ethics Ombudsperson

An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.

Corporate Conscience

A concept referring to a company's ethical compass and its commitment to doing what is right in terms of social responsibility, beyond mere compliance with laws.