Question
Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to market their respective products in China on July 18 (7/18), February 12 (2/12),
Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to market their respective products in China on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Given the information below, calculate the cumulative abnormal return (CAR) for these stocks as a group. Assume all companies have an expected return equal to the market return. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers for all columns to 1 decimal place.)
Ross Co. | Westerfield, Inc. | Jordan Company | ||||||||
Date | Market Return | Company Return | Date | Market Return | Company Return | Date | Market Return | Company Return | ||
7/12 | -0.1 | -0.6 | 2/8 | -0.1 | -0.6 | 10/1 | 0.7 | 0.8 | ||
7/13 | 0.5 | 0.3 | 2/9 | -0.4 | -0.6 | 10/2 | 0.6 | 0.8 | ||
7/16 | 0.2 | 0.4 | 2/10 | 0.2 | 0.6 | 10/3 | 0.5 | 1.3 | ||
7/17 | -0.6 | -0.2 | 2/11 | 0.4 | 1.4 | 10/6 | -0.1 | -0.5 | ||
7/18 | -1.5 | 1.3 | 2/12 | -0.1 | 0.1 | 10/7 | -2 | -0.5 | ||
7/19 | -1.2 | -0.2 | 2/15 | 0.9 | 1.8 | 10/8 | 0.3 | 0.3 | ||
7/20 | -0.9 | -0.5 | 2/16 | 0.7 | 0.3 | 10/9 | -0.5 | -0.8 | ||
7/23 | 0.6 | 0.4 | 2/17 | -0.1 | 0 | 10/10 | 0.1 | -0.1 | ||
7/24 | 0.5 | 0 | 2/18 | 0.9 | 0.4 | 10/13 | -0.3 | -0.6 | ||
Abnormal returns (Ri |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started