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Question
A.B. Pharmaceutical announced FDA approval for a new drug on October 12. Uptown Drug Co. announced FDA approval for its new drug on October 14. No other information was released that would affect returns over this time period. What is the combined cumulative abnormal return for the 5 day period commencing 2 days prior to the FDA approval announcement date? Use the following data to answer this question. No trading occurred on October 15 or 16.
A. 0.6 percent
B. 1.0 percent
C. 1.2 percent
D. 1.3 percent
E. 1.6 percent
Answer
This answer is hidden. It contains 2 characters.
Related questions
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What are the advantages and the disadvantages of a homeowner selecting a 30-year mortgage rather than a 20-year mortgage?
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You have a 25-year mortgage at 5 percent interest. The initial loan amount was $250,000. By how much did the principal decrease over the first 10 years of the loan? Payments are made monthly.
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Which one of the following is correct concerning the total payment amount on a PO strip?A. The total payment amount equals the bond's par value.B. The total payment amount will either equal or exceed the bond's par value.C. The total payment will vary based on the PSA schedule.D. The total payment amount will increase if interest rates decline.E. The total payment amount will vary if the prepayment rate varies.
Q:
Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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B. The investor will receive fixed quarterly interest payments.
C. The investor will receive the future value of $25,000 at maturity.
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Q:
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A. advantage; advantage
B. advantage; disadvantage
C. disadvantage; advantage
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E. advantage; neutral event
Q:
Briefly outline and discuss Porter's Five Forces and their use.
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Q:
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Q:
Assume there are 475 million people in the United States, 175 million of which make up the labor force. If 16 million are unemployed, what is the unemployment rate?
A. 8.35%
B. 9.14%
C. 10.91%
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E. 11.74%
Q:
An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
Q:
Assume the inflation rate in 2012 is 2.1 percent. If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent, what are the approximate real growth rates of GDP and wages?
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Q:
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Q:
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Q:
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Q:
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Q:
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B. real GDP
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Q:
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C. Business cycles
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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A. accept the call; the call price exceeds the conversion value
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D. convert their bonds; the conversion price exceeds the call price by $12.90
E. elect to continue holding their bonds; they want to continue receiving the interest payments
Q:
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C. $1,481.10
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