You want to test the speed with which stock market prices, Financial Management

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You want to test the speed with which stock market prices

You want to test the speed with which stock market prices adjust to positive earnings announcements. Company A makes its earnings announcement on May 20 and company B on June 16. You collected for each company daily share price returns two days before the event day and two days after the event day as reported below. Company A has a beta of 1 and Company B a beta of 2.

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Financial Management: You want to test the speed with which stock market prices

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Financial Management: You want to test the speed with which stock market prices

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