Event studies to test for market efficiency would NOT be concerned with the following:
A) stock splits and dividend announcements
B) the January effect
C) mergers and acquisitions
D) divestitures

Question

Quizplus · Accepted Answer

The January effect is a market anomaly where stock prices tend to rise in January, and therefore it is not related to testing for market efficiency. The other options (A, C, and D) are all events that could impact a stock's price and would be of interest in testing for market efficiency.

Event Studies to Test for Market Efficiency Would NOT Be