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5. Explain a. What is the size effect? b. What is the January effect? c. Does the size effect contradict CAPM? Explain. d. Does the

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5. Explain a. What is the size effect? b. What is the January effect? c. Does the size effect contradict CAPM? Explain. d. Does the size effect contradict the efficient market? Explain 6. Suppose we observe the following graph related to price movement around merger and acquisition announcement. Explain whether the market is efficient or inefficient? What form of efficiency do we discuss? Weak, semi-strong, or strong form? Explain! 25 20 15 10 5 A 20 2 27 Vo 2. 6. 42 > > 7 9 6 2 6 ?> 0 -5 -10 Merger and Acquisition Announcement 5. Explain a. What is the size effect? b. What is the January effect? c. Does the size effect contradict CAPM? Explain. d. Does the size effect contradict the efficient market? Explain 6. Suppose we observe the following graph related to price movement around merger and acquisition announcement. Explain whether the market is efficient or inefficient? What form of efficiency do we discuss? Weak, semi-strong, or strong form? Explain! 25 20 15 10 5 A 20 2 27 Vo 2. 6. 42 > > 7 9 6 2 6 ?> 0 -5 -10 Merger and Acquisition Announcement

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