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ALLGO announced at Time t that it was acquiring DoLittle Industries. There were no other announcements affecting these firms. ALLGO's stock had daily returns of
ALLGO announced at Time t that it was acquiring DoLittle Industries. There were no other announcements affecting these firms. ALLGO's stock had daily returns of -.2, +.1, -.5, -.1, +.1 for Timet - 2to Timet + 2, respectively. The daily returns on the market were -.1, +.2, +.1, -.2, and +.2 for Timet - 2to Timet + 2, respectively. What is the cumulative abnormal return for these five days?
A -.5
B -.7
C -.3
D -.10
E -.8
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