Q1. (70pts) Event study We observed the Carey stock price movements over the last five days. Events occurred on day 2 and 4. 1 Day Event Price 0 2 3 4 5 1 0 1 0 1.20 1.15 0.97 0.95 1.00 We go through steps for computing the impact of "Event" on the Carey stocks. 1. (10pts) Compute the log prices. Fill in the blanks: Day 1 2 3 4 5 0 0 1 0 1 Event Price Log(Price) 1.00 1.20 1.15 0.97 0.95 2. (10pts) Compute the daily log returns. Fill in the blanks: 2 3 4 5 1 Day 1 Event 0 Price 1.00 Returns N/A 0 1 0 1.15 0.97 0.95 1.20 3. (10pts) What is the average daily return? 4. (10pts) What is the average daily return during event days? Q1. (70pts) Event study We observed the Carey stock price movements over the last five days. Events occurred on day 2 and 4. 1 Day Event Price 0 2 3 4 5 1 0 1 0 1.20 1.15 0.97 0.95 1.00 We go through steps for computing the impact of "Event" on the Carey stocks. 1. (10pts) Compute the log prices. Fill in the blanks: Day 1 2 3 4 5 0 0 1 0 1 Event Price Log(Price) 1.00 1.20 1.15 0.97 0.95 2. (10pts) Compute the daily log returns. Fill in the blanks: 2 3 4 5 1 Day 1 Event 0 Price 1.00 Returns N/A 0 1 0 1.15 0.97 0.95 1.20 3. (10pts) What is the average daily return? 4. (10pts) What is the average daily return during event days