Q4 4. Explain in your own words what "post-announcement drift" is. Why is this an anomaly forsecurities market efficiency? Give two behavioural biases that could generate post-announcement drift.

1) Post declaration float: the inclination at the offer costs of firms that report GN or BN in…

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ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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4. Explain in your own words what "post-announcement drift" is. Why is this an anomaly for
securities market efficiency? Give two behavioural biases that could generate post-
announcement drift.

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