The Beta Company had a complete management changeover recently. Your finance professor is currently studying Beta's stock price for the two weeks prior to and the two weeks after the changeover to ascertain how the market reacted to the change in management. Your professor is conducting a(n):
A) management survey.
B) market analysis.
C) event study.
D) auditing review.
E) trend study.

Question

Quizplus · Accepted Answer

The professor is conducting an event study, which involves analyzing how a particular event (in this case, the management changeover) affects a company's stock price. The other options (management survey, market analysis, auditing review, trend study) do not accurately describe the professor's research objective.

The Beta Company Had a Complete Management Changeover Recently