MGF301 Assignment 3 spring 2008 with answers-2-

MGF301 Assignment 3 spring 2008 with answers-2- -...

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On March 14, Bear Stearns announced its agreement with JPMorgan Chase Bank for its temporary funding due to liquidity squeeze. After this announcement, it gets reflected in  market price. It seems there was a rapid response as the price falls from $54.24 to $30  to the new information on Friday because the price fell steeply.  After the fall, Bear Stearns opened on Monday morning March 17,  and the price went down from $30 to $3.17 which was slightly  above the price which JPMorgan announced to exchange stocks. After the rapid response, though there are some fluctuations, stock price is  maintaining straight. In terms of market efficiency, it is consistent with semi-strong  market efficiency as public information seem to be reflected in market. Date Open High Low Close Volume Adj Close 3/19/2008 6.83 7.1 4.9 5.33 76830700 5.33 3/18/2008 5.5 8.5 5.01 5.91 166480900 5.91 3/17/2008 3.17 5.5 2.84 4.81 166545600 4.81 3/14/2008 54.24 54.79 26.85 30 186885800 30 3/13/2008 57.64 58.6 50.48 57 70720800 57 3/12/2008 65.5 67.82 61.35 61.58 26803300 61.58 3/11/2008 68.02 68.24 55.42 62.97 54966600 62.97
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This note was uploaded on 08/30/2010 for the course MGA 311 taught by Professor Jansima during the Spring '09 term at SUNY Buffalo.

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MGF301 Assignment 3 spring 2008 with answers-2- -...

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