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7 Cards in this Set
- Front
- Back
- 3rd side (hint)
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M1 |
Market adjustment to unexpected news takes several years to adjust |
Market adjustment |
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A2 |
Focuses on the relationship between abnormal stock return and unexpected earnings change |
Abnormal stock return and unexpected earnings change |
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F3 |
Hypothesizes that they should be able to observe a relationship between forecast error and abnormal stock return |
Forecast error and abnormal stock return |
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I4 |
Proves inconsistency with the semi-strong form of EMH |
Inconsistency |
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A5 |
When actual income change differs from expected income change, and the forecast error is positive, the market typically reacts in the same direction |
Actual income change |
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D6 |
The drift upwards or downwards starts 12 months before the annual income report is released and continues 1 month after its release |
Drift |
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E7 |
Implies existence of a positive association between the sign of the error in forecasting income and abnormal returns |
Existence |
