The "event study" methodology is used in the test of:
A) weak form efficiency
B) semi-strong form efficiency
C) strong form efficiency
D) none of the above

Question

Quizplus · Accepted Answer

The "event study" methodology is used to test semi-strong form efficiency of the market. It examines the impact of an event, such as a corporate announcement or economic report, on the stock prices of the relevant companies. The fact that the market reacts to such events suggests that semi-strong form efficiency is not fully realized.

The "Event Study" Methodology Is Used in the Test Of