How would you characterize a stock market in which the PEAD persists over a long period of time? That is, PEAD exists for many years. Wikipedia: In financial economics and accounting research, post-earnings-announcement drift, or PEAD (also named the SUE effect) is the tendency for a stock's cumulative abnormal returns to drift in the direction of an earnings surprise for several weeks (even several months) following an earnings announcement.
Sample Solution