Event studies attempt to determine:
A)the influence of information released to the market on stock prices in days surrounding the information's release.
B)if the market is at least weak form efficient.
C)whether the market is semi strong or strong form efficient.
D)the correlation between the returns on two diverse securities.
E)the optimal time to release new information to the public.

Question

Quizplus · Accepted Answer

Event studies analyze the impact of a particular event or information on stock prices in the days surrounding the event's release. The focus is on determining whether the event had a statistically significant effect on the stock price, and thus, identifying the market reaction to the event.

Event Studies Attempt to Determine