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 United American 41

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 United American 41 Market Company Date Return Return 7/12 - 41 -.61 7/13 .00 31 7/16 1.09 1.36 7/17 -1.09 -.93 7/18 -2.20 1.10 7/19 -.95 -.55 7/20 -1.00 -1.22 7/23 .72 31 7/24 .21 .02 Market Company Market Company Date Return Return Date Return Return 2/8 -.90 -1.20 10/1 .61 2/9 -1.00 -1.20 10/2 .51 .81 2/10 51 24 10/3 1.21 1.21 2/11 .71 3.16 10/6 21 -2.40 2/12 - 41 - 20 10/7 -2.31 -41 2/15 1.21 2.66 10/8 2/16 .61 .61 10/9 - 41 -.19 2/17 -41 -23 10/10 41 -26 2/18 41 31 10/13 .00 -21 61 .61 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 (R; - RM) Days from announcement Delta United American Sum Average abnormal return Cumulative average return -4 -3 -2 -1 0 1 2 3 4

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

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

3rd Edition

1450421040, 978-1450421041

More Books

Students also viewed these Finance questions