In which of the following situations is an event study most likely to be useful?

Question

Quizplus · Accepted Answer

An event study is most useful when analyzing the impact of a specific event on the stock price of a firm, such as the announcement of a new patent. Options A, B, and D are less suitable for an event study as they involve broader economic or societal factors that may have multiple causes and effects. Event studies are most useful when studying the impact of a specific event on a firm's stock price. In option C, the announcement of a new patent is a clear event that could have a significant impact on the firm's stock price, making it the best choice for an event study. Options A, B, and D may also use event studies, but they are less clear cut and may require additional analysis to determine the impact of the specific event.

In Which of the Following Situations Is an Event Study