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IrinaK [193]
3 years ago
6

Clever tests to discriminate between alternative explanations. LaPorta, Lakonishok, Shleifer, and Vishny ("Good News for Value S

tocks," Journal of Finance, June 1997) study the returns on stocks on the few days surrounding their quarterly earnings announcements (relative to various expected return benchmarks). They find that on average, high-B/M stocks earn 0.9% around an earnings announcement. In contrast, low-B/M stocks earn an average of -0.1% around an earnings announcement. The difference is statistically significant.
Discuss whether the return pattern found by LaPorta et al. (1997) around earnings announcements is more consistent with the irrational expectations (behavioral) view, or the risk factor (efficient markets) view of the book-to-market effect, and explain your logic.
Business
1 answer:
yulyashka [42]3 years ago
8 0

Answer:

The answer to the above question is:

"The return patterns around earnings announcement is an example of behaviorial pattern exhibiting as more investors flock to buy the stock which has shown better earnings thus driving up the price. In an efficient market, this information would already be built into the price and thus there would not be any appreciable change in price post earning announcement".

Explanation:

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Read the following scenario. An urban area in southern Texas is rapidly growing. The population has almost doubled over the past
Alex73 [517]
I'm not 100% sue but I think the answer is option D: District boundaries will remain the same, but the voting pattern will shift from Republican to Democratic. Hope this helps!
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3 years ago
You spent this much on your past three electric bills: $76, $58, and $88. How much should you budget for electricity this month?
Arlecino [84]

Answer:$74

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4 0
3 years ago
Miss. Asma works as a sales executive at HBL Bank, is upset at the way her manager, Sadaf, always calls her in for one-on-one me
olasank [31]

Answer:

Sadaf's behavior exemplifies Fundamental attribution error.

It can be replicated if Sadaf does not try to understand Asma's point of view of her underperformance.

Explanation:

The Fundamental Attribution Error is a type of error by the people of over-emphasizing the characteristics of a person while ignoring the situational factors. In such type of cognitive bias, people tend to instil the personal trait of other or judging them for their laid-back behavior based on their personal trait rather than thinking of any possibility of external situation that may have caused it.

In the given situation, Sadaf is showing fundamental attribution error behavior by instilling to Asma's underperformance with her laid-back behavior instead of asking her the real problem.

This attribution error can be replicated if Sadaf did not ask Asam for the reason behind her underperformance.

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3 years ago
Distribution supports which elements of the marketing mix strategy
ratelena [41]

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Explanation:jus took the quiz

8 0
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You decide to integrate your supply chain to cut down production time. This is an example of a(n) _________ strategy.
RSB [31]

When a company integrates its supply chain to allow it to improve efficiency, this is known as<u> Vertical Integration. </u>

<h3>What is vertical integration?</h3>
  • Involves acquiring a company along the supply chain.
  • Can be either forward or backward integration.

Forward integration involves acquiring a company that is further along in the supply chain such as a producer acquiring a retailer. Backward integration would be the reverse situation.

In conclusion, this is vertical integration.

Find out more on vertical integration at brainly.com/question/19815172.

5 0
2 years ago
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