41.e Flashcards
(6 cards)
1
Q
q
A
2
Q
What is abnormal profit?
A
Returns that are greater than expeted returns - used to test market efficiencies.
3
Q
What is technical analysis
A
Technical Analysis looks at historical price and volume data - has some success in emerging markets, so not always working but sometimes
4
Q
What is fundamental analysis and event study?
A
It’s based on public information e.g. earning, dividends, accounting ratios
Event Study = examining normal returns before and after the release of new informations that affect a firms intrinsic value
5
Q
What are most markets?
A
Developed = semi strong efficient
Developing (some) = semi strong inefficient
6
Q
A
