The table below shows the performance of Nvidia stock two days after announcing its earnings. The...

 

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The table below shows the performance of Nvidia stock two days after announcing its earnings. The earnings are released at the close of trading on the dates indicated and Nvidia provides the dates it will release its earnings weeks ahead of the actual release date. You decide to test whether there is an opportunity to earn positive returns by trading the stock the day of the announcement. Nvidia's post-earnings share-price performance PERFORMANCE TWO DAYS AFTER DATE OF EARNINGS RELEASE May 24, 2023 Feb. 22, 2023 Nov. 16, 2022 Aug. 24, 2022 May 25, 2022 Feb. 16, 2022 -10.8 Nov. 17, 2021 Aug. 18, 2021 are price, market cap); Dow Jones Market Data, FactSet (post earnings performance) -3.1 -5.6 12.2 10.8 9.3 12.7 27.5% What is the average return 2 days after the announcement? Enter the return as a percentage and round to 2 decimals: What is the standard deviation of the 2-day returns assuming it is the entire population of the data? Enter the standard deviation as a percentage and round to 2 decimals: You test the null hypothesis the return is significantly different from zero. What is the t-statistic? Enter the t-statistic and round to 2 decimals: Based on the results of the study, the statistically logical trading strategy for trading on the announcement day would be: a. Buy or long the stock. b. Sell or short the stock. C. Wait an additional day to buy the stock. d. Wait an additional day to short the stock. e. Take neither a long or short position in the stock. f None of the above answers is correct The table below shows the performance of Nvidia stock two days after announcing its earnings. The earnings are released at the close of trading on the dates indicated and Nvidia provides the dates it will release its earnings weeks ahead of the actual release date. You decide to test whether there is an opportunity to earn positive returns by trading the stock the day of the announcement. Nvidia's post-earnings share-price performance PERFORMANCE TWO DAYS AFTER DATE OF EARNINGS RELEASE May 24, 2023 Feb. 22, 2023 Nov. 16, 2022 Aug. 24, 2022 May 25, 2022 Feb. 16, 2022 -10.8 Nov. 17, 2021 Aug. 18, 2021 are price, market cap); Dow Jones Market Data, FactSet (post earnings performance) -3.1 -5.6 12.2 10.8 9.3 12.7 27.5% What is the average return 2 days after the announcement? Enter the return as a percentage and round to 2 decimals: What is the standard deviation of the 2-day returns assuming it is the entire population of the data? Enter the standard deviation as a percentage and round to 2 decimals: You test the null hypothesis the return is significantly different from zero. What is the t-statistic? Enter the t-statistic and round to 2 decimals: Based on the results of the study, the statistically logical trading strategy for trading on the announcement day would be: a. Buy or long the stock. b. Sell or short the stock. C. Wait an additional day to buy the stock. d. Wait an additional day to short the stock. e. Take neither a long or short position in the stock. f None of the above answers is correct

Answer rating: 100% (QA)

To calculate the average return standard deviation and the tstatistic we can use the given data The ... View the full answer