iii. Calculate: the three-day return earned by your firm for the period from the day before the announcement day to the day after the announcement date; and the two-day return earned by your firm for the period from the day of the announcement to the day after the announcement date. (1 mark) 8 Announcement date 22/02/2017 9 To calculate three days return from 20Feb - 22Feb, I will need to price on 20 Feb and 23Feb 10 Three days return: 11 0.080935252 8.09352518 % 12 13 To calculate two day return, will need to price on 21 Feb and 23 Feb 14 Two days return: 15 0.090744102 9.074410163 % iv. Calculate the market return for the corresponding periods in (iii). (1 mark) 18 19 Market 20 20/02/2017 21 21/02/2017 22 22/02/2017 23 23/02/2017 24 24/02/2017 5,840.53 5,835.41 5,850.12 5,832.54 5,786.88 25 v. Calculate the excess return: (iii) - (iv) (1 mark) vii. Discuss the relevant theories/hypotheses for the findings in (iv) and (v), may include citation and references.