Assume that the market is semi-strong efficient. BearCo's current CEO is highly skilled, and his...
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Assume that the market is semi-strong efficient. BearCo's current CEO is highly skilled, and his presence increases the firm's value by approximately 10% based on analyst reports. However, his demeanor has created enemies, and BearCos board of directors just held a closed door meeting in which they voted for his termination. They plan to announce the decision after the close of trading on April 1st. What would be the approximate expected abnormal return on the stock on April 2nd? a) 10% b) 0% c) -10% d) A positive percentage, but less than 10% Assume that the market is semi-strong efficient. BearCo's current CEO is highly skilled, and his presence increases the firm's value by approximately 10% based on analyst reports. However, his demeanor has created enemies, and BearCos board of directors just held a closed door meeting in which they voted for his termination. They plan to announce the decision after the close of trading on April 1st. What would be the approximate expected abnormal return on the stock on April 2nd? a) 10% b) 0% c) -10% d) A positive percentage, but less than 10%
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