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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