FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume today is an earnings announcement day for a firm. For the day, the firm's return was .8 percent, while the risk- free daily rate

image text in transcribed

Assume today is an earnings announcement day for a firm. For the day, the firm's return was .8 percent, while the risk- free daily rate was .01 percent and the market rate of return was 1.1 percent. The firm's industrial class returned 1.2 percent on average for the day. What was the firm's abnormal return for the day

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Your Finances Gods Way Workbook A Biblical Guide To Making The Best Use Of Your Money

Your Finances Gods Way Workbook A Biblical Guide To Making The Best Use Of Your Money

Authors: Scott LaPierre

1st Edition

073698402X, 978-0736984027

More Books

Students also viewed these Finance questions

Question

★★★★★
What is the purpose of the statement of shareholders equity? What information does it provide? Identify at least one type of stakeholder that would be interested in the information on a companys...

Answered: 1 week ago

Question

★★★★★
Compare and contrast nonverbal and verbal communication.

Answered: 1 week ago

Question

★★★★★
Assume the Giada Coffee Roasters Corp. ended the month of August 2019 with these data: Requirement 1. Prepare the income statement and the statement of retained earnings for Giada Coffee Roasters...

Answered: 1 week ago

Question

★★★★★
Assume today is an earnings announcement day for a firm. For the day, the firm's return was .8 percent, while the risk- free daily rate was .01 percent and the market rate of return was 1.1 percent....

Answered: 1 week ago

Question

★★★★★
Your project has four activities. Below is the current status of each activity. Activity A was supposed to cost $150,000 when complete. Its costs so far are $45,000. It is 35% complete. The activity...

Answered: 1 week ago

Question

★★★★★
In which of the following environments can sound travel fastest?

Answered: 1 week ago

Question

★★★★★
Which type of energy does an object have when it is in motion?

Answered: 1 week ago

Question

★★★★★
The working principle of a washing machine is?

Answered: 1 week ago

Question

★★★★★
Nuclear sizes are expressed in a unit named?

Answered: 1 week ago

Question

★★★★★
For the hydrogen atom, which series describes electron transitions to the N=1 orbit, the lowest energy electron orbit?

Answered: 1 week ago

Previous Question Next Question