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Question 21 Which of the following statements about post-earnings announcement drifit (PEAD) is correct? Intuitively, we expect PEAD to be less important nowadays because information

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Question 21 Which of the following statements about post-earnings announcement drifit (PEAD) is correct? Intuitively, we expect PEAD to be less important nowadays because information circulates faster in the economy. Studies have documented a trend in returns pre-earnings announcement as well as post-earnings announcement. PEAD is asymmetric in good and bad news due to short-selling constraints. All answers are correct

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