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3. Market model XYZ Corporation reported 2019 Quarter 2 EPS of 50.00 on July 05, 2019. The analysts' Co ses forecast for EPS was $0.42.
3. Market model XYZ Corporation reported 2019 Quarter 2 EPS of 50.00 on July 05, 2019. The analysts' Co ses forecast for EPS was $0.42. XYZ Corporation's stock closed at $40.00 on July 04, 2019 d $39.00 on July 05, 2019. The market indre was 7.500 at closing on July 04, 2019 and 7.490 at closing on July 05, 2019. The risk free rate was 0.01 and XYZ Corporation's stock beta a) Using the market model compute the expected retum on XYZ Corporation's stock price due to market wide factors b) What is the abnormal return on XYZ Corporation's stock on July 05, 20197 c) What are the unexpected or abnormal camings for the XYZ Corporation's second quarter of 2019? d) Based on the signs of the unexpected earnings and unexpected retums, what can you conclade about market efficiency? 3. Market model XYZ Corporation reported 2019 Quarter 2 EPS of 50.00 on July 05, 2019. The analysts' Co ses forecast for EPS was $0.42. XYZ Corporation's stock closed at $40.00 on July 04, 2019 d $39.00 on July 05, 2019. The market indre was 7.500 at closing on July 04, 2019 and 7.490 at closing on July 05, 2019. The risk free rate was 0.01 and XYZ Corporation's stock beta a) Using the market model compute the expected retum on XYZ Corporation's stock price due to market wide factors b) What is the abnormal return on XYZ Corporation's stock on July 05, 20197 c) What are the unexpected or abnormal camings for the XYZ Corporation's second quarter of 2019? d) Based on the signs of the unexpected earnings and unexpected retums, what can you conclade about market efficiency
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