Answer:
Abnormal return is the difference the actual return and the expected return of a security.A security(investment) abnormal return,positive or negative,measure how it performed over a given period.Abnormal return are used to evalaute stock's performance against the market return.Any investment earning abnormal return are performing better than expected.Thus ,every investor want to earn abnormal return.
What are abnormal returns and why would an investor want to earn them?
Insiders are able to earn abnormal returns on trades in their firms' stock. This is a violation of which form of efficiency? semistrong-form efficiency strong-form efficiency technical analysis weak-form efficiency
(b) economically ellilier Do you think investors can earn abnormal returns in financial markets that are at least semistrong-form efficient? 3-3
what rate of return would an investor earn on a preferred stock with annual constant dividend of $3.50 of the price paid for the stick is $33?
why CEOs and managers often do not do what shareholders would want them to do (principal agent problem) ? please share an article to source
1) If returns on bonds are generally lower than stocks, why would you invest in them? 2) What causes the price of bonds to change? 3) Why do companies issue bond? What benefits do they get in comparison to issuing equity?
If markets were semi-strong form efficient, which of the following situations would yield abnormal returns? Analyzing a company’s earnings report. Identifying a pattern in a company’s stock price. Obtaining insider information. None of the above would yield abnormal returns.
what are excess reserves and why might a bank want to keep them as part of their assets?
a. Under what circumstances would you (as an investor) prefer to receive cash dividends rather than stock dividends? If the company can reinvest its retained earnings at a higher ROI than I could earn on the money paid to me in dividends, I would prefer that the company pay a cash dividend. If I needed current income from my investment, I would want Cash dividends. b. Under what circumstances would you prefer stock dividends to cash dividends? If I needed...
What financial ratios would investors use who want current income (i.e. an investor who wants to buy stock in a company that pays dividends so they can use these dividends to pay their bills)?
why would an investor choose to exchange a property rather than just keep what they already have?