Multiple Choice
Ritter's study of Initial Public Offerings (IPOs) showed that the post offering stock performance was:
A) less than the control group by about 2% in the five years following the IPO.
B) incorrectly priced at issuance because over the next five years the abnormal returns were greater than zero on average.
C) immaterial to the pricing of the IPO because future market performance is unknown at issuance.
D) equal across IPOs, irrespective of risk or which year they were issued.
E) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Define the three forms of market efficiency.
Q4: An efficient capital market is one in
Q22: In examining the issue of whether the
Q23: When the stock price follows a random
Q25: The abnormal return in an event study
Q29: The notion that actual capital markets,such as
Q29: Studies of the performance of professionally managed
Q30: An investor discovers that for a certain
Q32: Which of the following is true?<br>A)Most empirical
Q57: Your best friend works in the finance