Arthur Andersen at one time set the gold standard in auditing. During November 2001, however, news reports stated that one of AA's largest and most prestigious clients, Enron, would have to restate previous years' financial statements. Enron was headquartered in Houston, TX.

The news reports also stressed that the numbers reported on the previously issued financial statements should not be relied upon. In December 2001, AA's CEO admitted to Congress that AA had made an error in the Enron audit, and then in January 2002 AA's announced that a huge amount of audit documents had been shredded.

Investors in the common shares of companies audited by AA become worried and their stock prices fell abnormally. Which of the following patterns of cumulative abnormal returns (CARs) best resembles the relative decrease in returns during the days covered by the shredding announcement?

Refer to this table below for the answer options, then mark the best answer below:

a. -4.00% All AA's Audit Clients -2.10%Houston Office Audit Clients - 1.96%Non-Houston Office Audit Clients

b. -2.10% All AA's Audit Clients -1.96% Houston Office Audit Clients -4.00%Non-Houston Office Audit Clients

c. -2.10% All AA's Audit Clients -4.00%Houston Office Audit Clients -2.10%Non-Houston Office Audit Clients

d. -2.10% All AA's Audit Clients -4.00% Houston Office Audit Clients -1.96%Non-Houston Office Audit Clients

e. None of the above.