Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Event studies are one of the most powerful and widely used applications of the capital asset pricing model (CAPM). An event study is an attempt to determine whether a particular event in the capital market or in the life of a company has affected a company's stock market performance. The event-study methodology aims to separate company-specific events from market- and industry- specific events, and has often been used as evidence for or against market efficiency.
1. An event study aims to determine whether an event or announcement caused an abnormal movement in a company's stock price. The abnormal returns (AR) are calculated as the difference between a stock's actual return and its expected return, where the stock's expected return is typi- cally measured using the market model, which relies only on a stock's market index to estimate its expected return.
2 Using the market model can measure the correlation between an individual stock's return and its corresponding market returns. In some cases, we sum the abnormal returns to arrive at the cumulative abnormal return (CAR), which measures the total impact of an event through a particular time period, also called the event window.
Q. Security offered - influence the rate of interest ? The rate of interest charged on the loan will be lesser if the debt is secured against an asset or assets of the company
Suppose the bid-ask spot prices for one British pound are $1.50 and $1.60 respectively. 1. Compute the bid-ask prices for one US dollar in terms of British pound. 2. Suppose
how do we measure equity in an orgarnisation
Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If company X has a dividend yield of 4%, what is the required return on their shares?
The Japanese Pension Fund System The Japanese pension system is a multi-pillar system. Public and private pension schemes are the two important pillars. The first tier is the Ba
Financial Leverage In accounting and finance, the amount of long lasting debt that an organization has in relation to its equity the longer the ratio, the larger the lever
What are the risks associated with using a large amount of short-term financing for working capital? Using a large amount of short-term financing in general allows funds to be
A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, i
Issuance Calendar Issuance calendar gives clear and timely information about the borrowing program of the government. It clearly conveys the maturity profile of outstanding sto
We have seen earlier that there are callable bonds. This is a valuable feature for the issuers who consider that their stock is undervalued enough so that selling
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd