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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 | .42 | .63 | 2/8 | .91 | 1.22 | 10/1 | .62 | .40 | |
7/13 | .00 | .32 | 2/9 | 1.01 | 1.22 | 10/2 | .52 | .69 | |
7/16 | 1.26 | 1.46 | 2/10 | .52 | .32 | 10/3 | 1.22 | 1.22 | |
7/17 | 1.26 | 1.08 | 2/11 | .72 | 3.34 | 10/6 | .22 | 2.58 | |
7/18 | 2.21 | 1.11 | 2/12 | .42 | .19 | 10/7 | 2.32 | .45 | |
7/19 | .85 | .70 | 2/15 | 1.22 | 2.78 | 10/8 | .62 | .62 | |
7/20 | .91 | 1.14 | 2/16 | .62 | .62 | 10/9 | .42 | .19 | |
7/23 | .73 | .53 | 2/17 | .42 | .22 | 10/10 | .42 | .25 | |
7/24 | .22 | .01 | 2/18 | .42 | .30 | 10/13 | .00 | .22 | |
Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. (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., 32.16.) |
Abnormal returns (Ri RM) | |||||||
Days from announcement | Delta | United | American | Sum | Average abnormal return | Cumulative abnormal return | |
4 | |||||||
3 | |||||||
2 | |||||||
1 | |||||||
0 | |||||||
1 | |||||||
2 | |||||||
3 | |||||||
4 |
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