Question: (News releases market reaction. and abnormal returns) Ex - contains information as to.
• Chasing poem and news items/releases of On companies
• The performance of various market indices an February 24. 1991
a. Ignoring the news items. mate and justify which of the dam mods you believe exhibited abnormal returns. Desire how you would go about determining whether that was the ease.
b. Ube Amgen nears was disclosed after the market dose. Thus the closing poet and price change do not reflect the news. Datum whether the sharp market reaction to the news was an indented of makes efficiency or whether the lack of anyone of the news indicated inefficiency. Discuss whether this question trued he asked with respect to the place change of Dell's shares in the last month.
c. The news items for Amgen and Dell imply that the price change was a toleration to the news reported. Although the AMC argument can he made in the ease of Dore. the ;wick dies not do so. State and Justify for which of these three companies there is the stomata argument that the market reaction is associated with the news release.
d. Discuss why. In the case of Dell. at is particulate difficult to determine the cause of the market reaction.