![]() ![]() Semi-strong form efficiency implies that market prices reflect all publicly available information concerning past trading history as well as fundamental aspects of the firm.2. The analysis is symmetric for insider sales.CFA PROBLEMS1. The positive abnormal returns after purchase suggest insider purchases in anticipation of good news. This is evidence of valuable inside information. The negative abnormal returns (downward drift in CAR) just prior to stock purchases suggest that insiders deferred their purchases until after bad news was released to the public. Compared to prior expectations, the announcement was a disappointment.23. The market may have anticipated even greater earnings. E] This estimate of firm-specific news would measure the market’s assessment of the potential profitability of Ford’s new model.22. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |