Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 Market Company Market

image text in transcribed
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 Market Company Market Company Market Company Date Return Return 7/12 39 7/13 7/16 Date Return Return Date Return Return 2/8 2/9 2/10 10/1 10/2 10/3 10/6 -.57 00 15 211 39 -981.16 2.83 2.45 -25 49 1.19 10/7-2.29 -.39 .00 92 1.19 19 2.14 -43 1.08 .57 7/20 -98 1.17 7/18 -2.18 7/19-93 2/12-39 2/15 2/16 10/8 10/9 10/10 10/13 -20 -20 7/23 7/24 79 42 218 14 12 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 "O" 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 Average abnormal Cumulative Delta -0.6 0.3 0.0 0.0 -0.2 0.2 0.2 0.2 3.3 0.4 -0.1 0.3 -0.1 0.2 0.1 0.2 -0.2 0.2 0.0 0.2 0.1 0.0 0.0 1.8 -0.2 -0.1 -0.1 -0.1 0.2 0.0 0.0 0.0 0.0 0.1 0.1

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

Investing In The Trump Era How Economic Policies Impact Financial Markets

Authors: Nicholas P. Sargen

1st Edition

3319760440,3319760459

More Books

Students also viewed these Finance questions

Question

Can uncertainty be estimated? If not, then why not? Explain.

Answered: 1 week ago

Question

Making insuranfe payments in advance is an example of

Answered: 1 week ago