Jumbo Ltd and Minimo Ltd announced their earnings figures on 3 July.The pattern in their abnormal returns is provided below. Jumbo Ltd is a large company with shares that trade regularly on ASX with an average bid- ask spread of 0.6%. Minimo Ltd is small company with infrequently traded shares and an average bid- ask spread of 3.6%. Assuming you can accurately predict the earnings figures, could you earn an abnormal profit on either of these companies? Discuss.

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Jumbo Ltd and Minimo Ltd announced their earnings figures on 3 July.The pattern in their abnormal returns is provided below.

Jumbo Ltd is a large company with shares that trade regularly on ASX with an average bid- ask spread of 0.6%. Minimo Ltd is small company with infrequently traded shares and an average bid- ask spread of 3.6%. Assuming you can accurately predict the earnings figures, could you earn an abnormal profit on either of these companies? Discuss.

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The Answer of Jumbo Ltd and Minimo Ltd announced their earnings figures on 3 July.The pattern in their abnormal returns is provided below.  Jumbo Ltd is a large company with shares that trade regularly on ASX with an average bid- ask spread of 0.6%. Minimo Ltd is small company with infrequently traded shares and an average bid- ask spread of 3.6%. Assuming you can accurately predict the earnings figures, could you earn an abnormal profit on either of these companies? Discuss.

Jumbo Ltd and Minimo Ltd Announced Their Earnings Figures on 3