MARKET EFFICIENCY WITH RESPECT TO QUARTERLY EARNINGS SURPRISES. Using the evidence presented in Exhibit 14.11, describe the extent to which the market is efficient with respect to quarterly earnings surprises during the 60 trading days prior to quarterly earnings announcements. Using the evidence presented in Exhibit 14.11, describe the extent to which the market is efficient with respect to quarterly earnings surprises during the 60 trading days following quarterly earnings announcements.
Text Book: Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective By James Wahlen, Stephen Baginski, Mark Bradshaw.