Question

The anomaly known as post-earnings announcement drift or momentum describes the tendency of stock prices to rise or fall for several ________ after unexpectedly good or bad earnings announcements.A) monthsB) weeksC) daysD) hours

Answer 1

B) weeks

Step-by-step explanation:

Post-earnings announcement drift, or PEAD is the tendency for a stock's cumulative abnormal returns to drift for several weeks (even several months) following the positive earnings announcement.