You would like to know how the market reacts when a Canadian firm acquires a foreign subsidiary. To determine this you could conduct:
A) financial analysis.
B) field testing.
C) risk analysis.
D) an event study.
E) a market survey.

Question

Quizplus · Accepted Answer

An event study would be the best choice to determine how the market reacts when a Canadian firm acquires a foreign subsidiary. An event study tracks the impact of a particular event (in this case, the acquisition) on the value of the firm's stock, allowing for statistical analysis of the effect on the market.

You Would Like to Know How the Market Reacts When