Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Meaningful Money Handbook

Authors: Pete Matthew

1st Edition

0857196510, 978-0857196514

More Books

Students also viewed these Finance questions

Question

Does it use a maximum of two typefaces or fonts?

Answered: 1 week ago