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Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to market their respective products in China on July 18, February 12, and October
Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to market their respective products in China on July 18, February 12, and October 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. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.) Date July 12 July 13 July 16 July 17 July 18 July 19 July 20 July 23 July 24 Ross Co. Market Return -.3 1.5 .1 -.6 -.5 -2.2 -.9 .6 1.5 Company Return -.9 .3 .6 -.2 1.3 -.4 -1.0 .4 . Westerfield, Inc. Market Company Date Return Return Feb 8 -.3 -.9 Feb 9 -.4 -.9 Feb 10 .6 .6 Feb 11 2.4 Feb 12 -.1 .1 Feb 15 1.6 1.6 Feb 16 .7 .2 Feb 17 . Feb 18 1.9 .4 Date Oct 1 Oct 2 Oct 3 Oct 6 Oct 7 Oct 8 Oct 9 Oct 10 Oct 13 Jordan Company Market Company Return Return 1.7 .5 1.6 .5 .9 1.3 -.1 -.4 -1.9 -.4 1.6 .5 -.5 -.9 .1 -.1 -.3 -.6 -.1 Abnormal returns (R; -Rm) Ross W'field Jordan Sum Days from announcement -4 Average abnormal return Cumulative average residual -3 -2 -1 0 1 2 3 3 4
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