Q1) In 2019, a Goldman Sachs banker was charged in a scheme that allegedly generated $2

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Q1) In 2019, a Goldman Sachs banker was charged in a scheme that allegedly generated $2.6m in illegal profits as he tipped off a trader about multi-billion-dollar deals involving bank clients like Syngenta. The banker's action is an example of:

Select one:

a. Short-selling

b. Inside trading

c. Weak form of EMH

d. Event studies

 

 

Q2. Select whether the following statement is true or false. According to the semi-strong efficient market hypothesis (EMH), a trading algorithm that has been profitable a year ago has 100% probability of being successful in the following year.

Select one:

False

True

 

Q.3 If the Abnormal Return at time 1 (the first time period in a series) is 2, and 3 at time 2, then, all else equal, what was the CAR at time 2?

Select one:

a. 4

b. 5

c. 3

d. 2

 

Q.4 Please complete the sentence. Assuming all else equal, the CAR five days after a dividend announcement day, which had unexpected good news for investors, is most likely to be _______________ .

Select one:

a. Much greater than zero

b. Zero

c. Much smaller than zero