Prospectors, Inc., is a small publicly traded gold-prospecting company in Alaska. Usually its searches prove fruitless; however,

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Prospectors, Inc., is a small publicly traded gold-prospecting company in Alaska. Usually its searches prove fruitless; however, occasionally the prospectors find a rich vein of ore.

a. What pattern would you expect to observe for Prospectors’ cumulative abnormal returns?

b. Is this a random walk? Explain.

c. Is this consistent with an efficient market? Explain.

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Question Posted: May 27, 2024 02:11 AM

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Prospectors, Inc., is a small publicly traded gold-prospecting company in Alaska. Usually its searches prove fruitless; however,

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