Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

make it asap and show me every steps of calculations please B4. Estimating Abnormal Returns Information. Desmond Ltd announced its earnings results on 20th February.

make it asap and show me every steps of calculations please
image text in transcribed
B4. Estimating Abnormal Returns Information. Desmond Ltd announced its earnings results on 20th February. The table shows the price of Desmond shares, the return on a treasury note, and the overall market index for 19th and 20th February. Desmond has a beta of 2 Date Price ($) T-note (%) Market (Index) 19 Feb 4.00 5.25 5000 20 Feb 4.60 5.25 5050 Requirements. Answer the following questions: Q1. What was the return on Desmond shares on 20th February? Q2. What was the return on a treasury note on 20th February? Q3. What was the return on the market on 20th February? Q4. What was the expected return on Desmond shares on 20th February? Q5. What was the abnormal return on Desmond shares on 20th February

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

Students also viewed these Finance questions