Exam 13: Efficient Capital Markets and Behavioral Challenges

Southern Goods announced at Time t that it was replacing its CEO.There were no other announcements affecting the firm.The stock had daily returns of -.3,+.2,-.2,-.1,+.3 for Time _{t - 2} to Time _{t + 2},respectively.The daily returns on the market were -.4,+.2,-.4,-.2,and +.2 for Time _{t - 2} to Time _{t + 2},respectively.What is the cumulative abnormal return for these five days?

The hypothesis that market prices reflect all publicly available information is called _____ form efficiency.

Which one of these serial coefficient values is most consistent with weak form market efficiency?

If the financial markets are efficient,then investors should expect their investments in those markets to:

Keim's research presents evidence that the difference in performance between small capitalization stocks and large capitalization stocks is largest in the month of:

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

Individuals that continually monitor the financial markets seeking mispriced securities:

Franklin Mills announced at Time t that it just sold its worst performing division.There were no other announcements affecting the firm.The firm's stock had daily returns of -.1,+.3,+.8,-.1,+.3 for Time _{t - 2} to Time _{t + 2},respectively.The daily returns on the market were +.2,-.2,+.1,-.2,and +.1 for Time _{t - 2} to Time _{t + 2},respectively.What is the cumulative abnormal return for these five days?