Problem 14-1 Cumulative Abnormal Returns Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12) and October 7 (10/7), respectively Delta United American Market Company Market Company Market Company Date Return Return 51 26 91 31 1.05 60 1.15 45 07 Date Return Return 2/8 Date Return Return 10/1 10/2 10/3 10/6 10/7 10/8 10/9 10/10 7/12 7/13 7/16 85 95 46 1.10 56 46 1.16 16 2.26 56 36 36 25 2/10 7/18 7/19 7/20 7/23 7/24 61 61 2.15 2.15 05 2.01 56 1.16 -1.63 - 46 56 2/12 2/15 2/16 1.16 56 -.95 76 .26 2/18 36 15 10/13 16 Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group (A negative answer should be indicated by a minus sign. Leave no cells blank- be certain to enter "o" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Abnormal returns (Ri-RM) Average abnormal Cumulative Days from announcement 4 Delta United American return abnormal return