The Abnormal Returns for Initial Public Offerings Over Longer Time

Multiple Choice

The abnormal returns for initial public offerings over longer time periods seem to call market efficiency into question because:

A) the average returns at announcement are large and positive while the long-term results are much lower than the returns for seasoned equity offerings.
B) the average returns at announcement are small and negative while the long-term results are much lower than the returns for seasoned equity offerings.
C) the average returns at announcement are zero while the long-term results are much higher than the returns for seasoned equity offerings.
D) the average returns at announcement are large and positive while the long-term results are much higher than the returns for seasoned equity offerings.
E) the average returns at announcement are insignificant while the long-term results are much lower than the returns for seasoned equity offerings.