Evidence is consistent semi-strong form market efficiency

Assignment Help Financial Management

Reference no: EM13881943

Find an announcement of new information made within a month from today (i.e., earnings announcement, merger, etc.) for any publicly traded stock that moves the stock price at least 1%. Print out or draw a chart that shows at least 2 days before the event and at least one day after. [Note: make sure you find the first announcement of the information.]

(a) Using this chart, analyze if the evidence is consistent with the semi-strong form market efficiency.

(b) Is the stock market reaction consistent with the strong form of market efficiency?

Reference no: EM13881943

Questions Cloud

Issues zero coupon bonds on the market : Atlantis Fisheries issues zero coupon bonds on the market at a price of $492 per bond. These are callable in 9 years at a call price of $550. Using semi annual compounding, what is the yield to call for these bonds?

What is the current bond price : Great Wall Pizzeria issued 12-year bonds one year ago at a coupon rate of 6.9 percent. If the YTM on these bonds is 9.1 percent, what is the current bond price?

Mature manufacturing firm- what will you pay for share today : Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.65, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return of 12 percent on this stock, what will you pay for a sha..

Finds an arbitrage-what is the net cash flow in one year : Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. Assume that an arbitrager can borrow up ..

Evidence is consistent semi-strong form market efficiency : Find an announcement of new information made within a month from today (i.e., earnings announcement, merger, etc.) for any publicly traded stock that moves the stock price at least 1%. Print out or draw a chart that shows at least 2 days before the e..

Make sense to replace your incandescent bulbs today : Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.42 and lasts for 1,000 hours. what cost per kilowatt-hour does it make sense to rep..

What are three most common forms of business organizations : What are the three most common forms of business organizations in the United States? What are the three basic types of agency relationships? What is the BMW v. Gore test and how is it used?

Principal are loyalty-obedience-performance : The duties of an agent to her principal are loyalty, obedience, performance and which of the following: Administrative law agencies usually have three types of authority.

Calculate the cost of fuel of conventional energy system : Calculate the cost of fuel of a conventional (non-solar) energy system for 12 years, if the total annual load is 152 GJ and the fuel price is $14/GJ, the market discount rate is 8%, and the fuel inflation rate is 5% per year.

User Account

All Pages