Answer one of the following two question. (Note: 20 - 50 words for each question. The question will be marked vero if you copy a great amount of incorrect and arrivand information from the internet, ander which crite your highest course grade will be ) (Stock Split, 25 points) An event study tracks what happens when a firm ones that it will plats stock. (For example, each stock will be broken into two stocks, each worth half of the original price) The Announcement date s day and the study looks at boormal returns in the 11 day window Mound in dues The pattern for a sample of 175 firms uncing stock split is shown in the table below Take the first row of the table, for example is the main fums for the sth trading day preceding the announcement is +35 basis points, or +0.35%, which is not significantly different from zero, as suggested batut less than 2 Relative day Average abnormalen 0.0035 10 0.0024 -3 00054 235 -2 00038 200 -1 0.0042 111 001 114 1 00100 94 2 0.0026 130 3 0.0010 165 0.0015 09 00028 100 Discuss whether announcement of stock y conveys rood news, bad new or now. Analyze whether there beskape of the (Beating the Market, 25 pout) The article from the NYT tited NYT20131208 Bearing the Markets Rachable Goals about Me Robert Olieben whole gue he would not be able to beat the mac The article explains how Me Olsenfund done so most of the time. The anche al Medicinska As Mr Olsen declares. "I care about specific companies and whether they are good buys at the ice, and if they are, we'll hold on to the Suppose you have all data you imagine (monthly return the fund monthly market returns, amet. Please explain how you would say what Me Old shows some special kill is determining his fand's composition, or whether the extra return he cans is basically compensation for the risk tht find Attache DC What does this graph says? Components of the 6.8% inflation rate Contion to notion over 12 months 75 125 15 30 30 ter More M. Sew Answer one of the following two question. (Note: 20 - 50 words for each question. The question will be marked vero if you copy a great amount of incorrect and arrivand information from the internet, ander which crite your highest course grade will be ) (Stock Split, 25 points) An event study tracks what happens when a firm ones that it will plats stock. (For example, each stock will be broken into two stocks, each worth half of the original price) The Announcement date s day and the study looks at boormal returns in the 11 day window Mound in dues The pattern for a sample of 175 firms uncing stock split is shown in the table below Take the first row of the table, for example is the main fums for the sth trading day preceding the announcement is +35 basis points, or +0.35%, which is not significantly different from zero, as suggested batut less than 2 Relative day Average abnormalen 0.0035 10 0.0024 -3 00054 235 -2 00038 200 -1 0.0042 111 001 114 1 00100 94 2 0.0026 130 3 0.0010 165 0.0015 09 00028 100 Discuss whether announcement of stock y conveys rood news, bad new or now. Analyze whether there beskape of the (Beating the Market, 25 pout) The article from the NYT tited NYT20131208 Bearing the Markets Rachable Goals about Me Robert Olieben whole gue he would not be able to beat the mac The article explains how Me Olsenfund done so most of the time. The anche al Medicinska As Mr Olsen declares. "I care about specific companies and whether they are good buys at the ice, and if they are, we'll hold on to the Suppose you have all data you imagine (monthly return the fund monthly market returns, amet. Please explain how you would say what Me Old shows some special kill is determining his fand's composition, or whether the extra return he cans is basically compensation for the risk tht find Attache DC What does this graph says? Components of the 6.8% inflation rate Contion to notion over 12 months 75 125 15 30 30 ter More M. Sew
