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
Date	Market Return	Company Return	Date	Market Return	Company Return	Date	Market Return	Company Return
7/12	?.44	?.67	2/8	?.93	?1.26	10/1	.64	.38
7/13	.00	.34	2/9	?1.03	?1.26	10/2	.54	.73
7/16	1.55	1.73	2/10	.54	.36	10/3	1.24	1.24
7/17	?1.55	?1.33	2/11	.74	3.73	10/6	.24	?2.97
7/18	?2.23	1.13	2/12	?.44	?.17	10/7	?2.34	?.43
7/19	?.87	?.68	2/15	1.24	3.05	10/8	.64	.64
7/20	?.93	?1.18	2/16	.64	.64	10/9	?.44	?.19
7/23	.75	.51	2/17	?.44	?.31	10/10	.44	?.23
7/24	.24	.06	2/18	.44	.28	10/13	.00	?.24

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 "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Days from announcement	Delta	United	American	Sum	Average abnormal return	Cumulative average residual
?4
?3
?2
?1
0
1
2
3
4