Please help me answering the following. Show your work. Question #$2$

At $4$:$20$ pm EDT on March $20,2018($after the markets closed for normal trading$),$ Fed Ex

released its earnings announcement for the third quarter of its fiscal year. The following stock

trading data is known:

You also know the risk$-$free rate from March $20$ to March $21,2018,$ was $0\mathrm{.}012$ percent $($or

$0\mathrm{.}00012).$ Various investment tools calculate Fed Ex's historical beta to be $1\mathrm{.}3969,$ using the

S&P $500$ Index as a proxy for market returns. financing."

Part A: Using the CAPM model, what was Fed Ex's abnormal return from the close of

trading on March $20,2018,$ through the close of trading on March $21,2018?$

Part B: Under the assumption of semi$-$strong market efficiency, did FedEx's earnings

announcement contain favorable or unfavorable news on average? Why? Ignore the stock

chart and information in Part $C$ to formulate your answer.