Studies of stock price reactions to news are called
A)reaction studies.
B)event studies.
C)drift studies.
D)both A and D are true.
E)both B and D are true.

Question

Quizplus · Accepted Answer

Studies of stock price reactions to news are commonly referred to as event studies, as they focus on the impact of specific events on stock prices. Choice A is incorrect, as reaction studies may refer to any study examining reactions to stimuli, not necessarily stock prices. Choice C is incorrect, as drift studies are focused on examining long-term trends in prices, rather than short-term reactions to events. Choice D is incorrect, as it includes both A (which is incorrect) and D (which is correct). Choice E is incorrect, as it includes both B (which is correct) and D (which is incorrect).

Studies of Stock Price Reactions to News Are Called