Which one of the following would best reveal how stock prices react when competitive firms merge?
A)financial analysis
B)field testing
C)risk analysis
D)event study
E)market survey

Question

Quizplus · Accepted Answer

An event study is the best choice as it analyzes the impact of a specific event, in this case, a competitive merger, on the stock prices of the firms involved. It measures the abnormal returns generated by the event and provides valuable insights into the reactions of the stock market to the merger. Financial analysis, risk analysis, and market surveys may provide some information, but they are not specifically designed to reveal how stock prices react to mergers. Field testing is unrelated to stock market reactions.

Which One of the Following Would Best Reveal How Stock