According to results by Seyhun, ________.

A) investors cannot usually earn abnormal returns by following inside trades after knowledge of the trades are made public
B) investors can usually earn abnormal returns by following inside trades after knowledge of the trades are made public
C) investors cannot earn abnormal returns by following inside trades before knowledge of the trades are made public
D) investors cannot earn abnormal returns by trading before insiders

Question

Varun Vineeth · Accepted Answer

Final Answer : A, Explanation :  Seyhun's results suggest that investors cannot usually earn abnormal returns by following inside trades after knowledge of the trades are made public. Therefore, option A is the correct choice. The other options are not consistent with Seyhun's findings.

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