Question
Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Delta United American Date
Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. |
Delta | United | American | ||||||
Date | Market Return | Company Return | Date | Market Return | Company Return | Date | Market Return | Company Return |
7/12 | .41 | .61 | 2/8 | .90 | 1.20 | 10/1 | .61 | .41 |
7/13 | .00 | .31 | 2/9 | 1.00 | 1.20 | 10/2 | .51 | .81 |
7/16 | 1.09 | 1.36 | 2/10 | .51 | .24 | 10/3 | 1.21 | 1.21 |
7/17 | 1.09 | .93 | 2/11 | .71 | 3.16 | 10/6 | .21 | 2.40 |
7/18 | 2.20 | 1.10 | 2/12 | .41 | .20 | 10/7 | 2.31 | .41 |
7/19 | .95 | .55 | 2/15 | 1.21 | 2.66 | 10/8 | .61 | .61 |
7/20 | 1.00 | 1.22 | 2/16 | .61 | .61 | 10/9 | .41 | .19 |
7/23 | .72 | .31 | 2/17 | .41 | .23 | 10/10 | .41 | .26 |
7/24 | .21 | .02 | 2/18 | .41 | .31 | 10/13 | .00 | .21 |
Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. All of the stocks have a beta of 1 and no other announcements are made. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. |
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