hen a firm announces an upcoming seasoned stock offering, the market price of the firm's existir increase. decrease. remain constant. "respond, but the direction of the response is not predictable as shown by past studies." decrease momentarily and then immediately increase substantially within an hour following the anno

In the event of unexpected news announcement, such as a significant reduction in profit expectations, which of the following is NOT a likely stock price reaction?: Select one: a. The price instantaneously adjusts to the new information. b. No reaction, since the market has already learned to "expect the unexpected" The price over-adjusts to the new information, but eventually falls to the appropriate price. d. The price partially adjusts to the new information.

choose the answer only

品 Check my work Consider the following information: Probability of Rate of Return if State Occurs State of Economy Economy Stock A Stock B .050 130 .220 -33 .23 oped Recession .23 Normal .63 Boom .14 .46 Book Hint a. Calculate the expected return for the two stocks. (Do not round interme calculations and enter your answers as a percent rounded to 2 decimal places 32.16.) b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places 32.16.) Print a. Expected return of A Expected return of B b. Standard deviation of A Standard deviation of B Graw **. **** APR 08 F3 F1 F2

Show the  monthly return of the company and  S&P 500 in the same graph.  What is  your  interruption interpretation  of  the  change  of  return  of  the  company  comparing  with the  market index?   Calculate  the  monthly  standard  deviation  and  return  for  both  the  company  and  S&P 500.  What  is your  interruption  of  the  risk  and  return  of  the  company  comparing  with the  market index?   S&P 500 last 6 months :       Date Open High Low Close* Adj. close** Volume       01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000       01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000       01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000       01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000       01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…

Investors expect a company to announce a 9 percent decrease in earnings, but instead the company announces a 1 percent decrease.  If the market is semistrong-form efficient, which of the following should happen?   a. The stock’s price rises because the earnings decrease was less than expected.   b. The stock’s price stays the same because earnings announcements have no effect if the market is semistrong-form efficient.   c. The stock’s price decreases slightly because the company had a slight decrease in earnings.

Jennifer establishes an investment account to pay for college expenses for her daughter. She plans to invest X at the beginning of each month for the next 20 years. Beginning at the end of the 17th year, she will withdraw 55,000 annually. The final withdrawal at the end of the 20th year will exhaust the account. She anticipates earning an annual effective yield of 11% on the investment. Calculate X. 276.80 307.70 317.60 346.20 349.10

Based on the CAPM, Jensen's Alpha of a firm a) equals zero if the firm's stock returns have underperformed as compared to the market after adjusting for its beta risk. b) is positive if the firm's stock returns have overperformed as compared to the market after adjusting for its beta risk. c) is negative if the firm's stock returns have overperformed as compared to the market after adjusting for its beta risk. d) equals one if the firm's stock returns have underperformed as compared to the market after adjusting for its beta risk.

84. You complete a test of autocorrelation on daily data for a thinly traded stock and the Durbin Watson statistic is 1.15.  If the stock has a return of  -0.33% late in the trading day and you are convinced that other investors are not aware of the results, based on the test results and probabilities, an investor would:   Buy or long the stock in late trading. Sell or short the stock in late trading. Wait an additional day to buy the stock. Wait an additional day to short the stock. Take neither a long or short position in the stock. None of the above answers is correct.

Can small adjustments to a flow lead to large changes in a stock?    Group of answer choices A.There is no way to determine if this is possible. B.Yes, given enough time. Even a small change in flow will accumulate over time. C.No. If the change in the flow is small, the change to the stock must also be small. D.Yes. If a penny is deducted from an account of $10,000, that change is large because every penny counts. E.No. Flows can’t change in small ways.