Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Ross Company; Westerfield, Incorporated; and Jordan Company announced a new agreement to market thelr respectlve products in China on July 1 8 , February 1

Ross Company; Westerfield, Incorporated; and Jordan Company announced a new agreement to market thelr respectlve products in China on July 18, February 12, and October 7, respectively. Glven the Information below, calculate the cumulative abnormal return (CAR) for these stocks as a group. Assume all companles have an expected return equal to the market return.
Note: A negatlve value should be Indlcated by a minus sign. Leave no cells blank - be certaln to enter "0" wherever requlred. Do not round Intermedlate calculations. Round your answers to 1 decimal place.
\table[[Ross Company,Westerfield, Incorporated,Jordan Company],[Date,\table[[Market],[Return]],\table[[Company],[Return]],,Market,Company,,,Market,Company],[July 12,-0.6,-0.3,February,Return,Return,Date,,Return,Return],[July 13,1.2,0.3,February,-0.6,-0.3,october,1,1.4,0.6],[July 16,0.4,0.3,February 1,-6.7
9.4,-0.3,october,2,1.3,0.6],[July 17,-0.6,-0.2,February 1,\table[[0.4],[0.6]],0.6,october,3,6.7,1.3],[July 18,-0.8,1.3,February 1,\table[[0.6],[-0.1]],2.1,October,6,-0.1,-0.7],[July 19,-1.9,-0.1,February 1,1.2,0.1=,october,7,-2.2,-0.7],[July 2,-0.9,-1.2,February 1,0.7,\table[[1.9],[0.5]],October,8,1:2,0.6],[July 23,0.6,0.4,February 1,-0.1,\table[[0.5],[0.0]],october,9,-0.5,-0.6],[July 24,1.2,0.0,February 1,1.6,\table[[0.0],[0.4]],october,10,0.1,-0.1]]
\table[[\table[[Days from],[announcement]],Abnormal returns (Ri-RM),\table[[Average abnormal],[return]],\table[[Cumulative],[average residual]]],[Ross,W'field,Jordan,Sum],[-4,,,2+22,,?bar(x+2),],[-3,,,,,,],[-2,,,?bar(x+2),,,],[-1,,,5,T,Din,],[0,,,5,,,2],[1,,,,5,,],[2,,,,+2,1+,?bar(x+2)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions