The abnormal return in an event study is described

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1. The abnormal return in an event study is described as the:

average return on a security for the 7-day period surrounding an announcement.

total return earned on a security on the day of an announcement.

daily return on a security on the announcement date minus the risk-free rate of return.

daily return on a security minus the daily return on the overall market.

average return on a security for the 7-day period surrounding an announcement minus the average return on the security for the past year.

2. Drawing conclusions from too small of a sampling describes the behavioral characteristic of:

representativeness.

conservatism.

underreaction.

familiarity.

overconfidence

Reference no: EM131878470

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