Around the announcement date of a merger or acquisition,abnormal returns to target firm shareholders normally average
A) 10%
B) 30%
C) -3%
D) 100%
E) 50%

Question

Quizplus · Accepted Answer

Abnormal returns to target firm shareholders around the announcement of a merger or acquisition typically average around 30%, as the market reacts positively to the potential premium offered by the acquiring firm.

Around the Announcement Date of a Merger or Acquisition,abnormal Returns