For a stakeholder, risk and return are essential considerations in the investment decision-making process. In order to understand the behavior of an investor it is essential to conduct a risk-return analysis.
The stock market is crucial to the economic performance of a country. Apart from being a source of business capital, investment, and government funds, stock markets play a role in personal wealth too.
Event study helps to determine the effect of an event on a dependent variable. In most cases event study is used to determine the impact of an event on the stock prices of a company. The main motive of the event study is to find whether the event has abnormal returns on the prices of the stock.
While investing in the stock market, the main aim for anyone is to generate the return on invested capital. Investors aren’t only trying to get the profitable returns from investing capital, but they also expect to outperform in the market.