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Intel Corporation (INTC) and General Electric Company announced a new agreement to market their respective products in Russia on August, 18 and November,9 respectively.

 


Intel Corporation (INTC) and General Electric Company announced a new agreement to market their respective products in Russia on August, 18 and November,9 respectively. Over the past 9 days, the common stock of Intel Corporation had daily return of -0.4, 0.3, 0.8, -0.2,1.3, -0.6, -1.3, 0.6 and 0.0 percent, respectively. For the same 9 days, the market had daily returns of -0.2, 0.1, 0.6, -0.5, -1.8, -0.7, -0.8, 0.5 and 0.2 percent, respectively. The common stock of General Electric Company had daily return of 0.5, 0.8,1.3, -0.5,-0.5, 0.3, -0.5, -0.2 and -0.8 percent respectively. For the same 9 days, the market had daily returns of 0.3, 0.2, 0.9, -0.1, -2.4, 0.3, -0.6, 0.2 and -0.2 respectively. Given the information above, calculate the cumulative abnormal return (CAR) for these stocks as a group and graph your results. Assuming that both companies have an expected return equal to the market return.

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