Question
Firm M announces news on March 19 th . Given the information below, calculate the abnormal return for the firms stock and determine whether the
Firm M announces news on March 19th. Given the information below, calculate the abnormal return for the firms stock and determine whether the news was good or bad for the firms shareholders.
Date | Ticker | Return | S&P 500 Return | Beta | Alpha |
Mar. 19 | M | 6.58% | 5.24% | 1.7 | 0.60% |
Group of answer choices
The negative abnormal returns suggests that firm M announced bad news
The positive abnormal return suggests that firm M announced good news
The negative abnormal return suggests that firm M announced good news
The positive abnormal return suggests that firm M announced bad news
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