Discuss the predictability of end-of-financial year returns implied by the event study results with specific reference to "tax-loss selling" and "window dressing". (5 marks)

                                                                

	Obs.	[-15,0]	[+1,+15]	[15,+15]
June/July event windows		All	356	-0.0009	-0.0007	-0.0016
(-0.3045)	(-0.275)	(-0.4589)
(a)	Past winners   >0	252	0.0053	-0.0030	0.0023
(1.6188)	(-1.1007)	(0.622)
Past losers   <0	104	-0.0161**	0.0050	-0.0111
(-2.3562)	(1.0258)	(-1.406)
(b)	Past winners in up-markets   >0 & >0	206	0.0030**	-0.0036	-0.0006
(0.9206)	(-1.3979)	(-0.1648)
Past winners in down-markets   >0 & <0	46	0.0159	-0.0005	0.0155
(1.4698)	(-0.047)	(1.4278)
Past losers in up-markets   <0 &>0	50	-0.0248***	0.0042	-0.0206
(-2.5347)	(0.668)	(-2.1384)
Past losers in down-markets   <0 & <0	54	-0.0081*	0.0058	-0.0024
(-0.8523)	(0.7739)	(-0.191)

1. 
   
2. Based on the event study results, recommend an end-of-financial year trading strategy. Assume there are no short-selling constraints. (5 mark
3. Identify the practical limitations to implementing your recommended end-of-financial year trading strategy. (3 marks)

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