^&* 6. Event Study (LO2, CFA2) Assume that on March 15, Trenten Medical received approval for a new drug. Using the data below from February 15 through February 28 as the measurement period, calculate the cumulative abnormal return (CAR) in the +/–3 days surrounding the announcement date.

Measurement Window Event Window Date Trenten Return Market Return Date Trenten Return Company Return Feb 15 1.18 .19 3/12 –.61 –.12 Feb 18 2.03 –.03 3/13 2.66 .85 Feb 19 1.60 .53 3/14 3.98 .13 Feb 20 2.20 1.92 3/15 20.69 –2.48 Feb 21 –.10 –2.08 3/18 5.56 3.43 Feb 22 .45 .08 3/19 3.01 .70 Feb 25 –1.58 –1.54 3/20 .07 .97 Feb 26 –1.62 –1.58 Feb 27 3.58 2.06 Feb 28 –2.81 –2.71