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Explain how the positive earnings announcement price drift (or Surprise Unexpected Earning (SUE)) works. How would you use SUE in this Fall 2020 earning reporting

  1. Explain how the positive earnings announcement price drift (or Surprise Unexpected Earning (SUE)) works. How would you use SUE in this Fall 2020 earning reporting season if you were a hedge fund manager?

  1. Explain how you would use the Security Market Line (SML) to discern the breadth of a portfolios individual stock winners vs. losers.

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