Delta Market Company United Market Company American Market Company Date Return Return Date Return Return Date Return Return 7/12 -,49 -77 2/8 -.98 -1.36 10/1 .69 33 7/13 .00 .39 2/9 -1.08 -1.36 10/2 .59 .83 7/16 2.30 2.58 2/10 .59 31 10/3 1.29 1.29 7/17 -2.30 -1.98 2/11 .79 4.73 10/6 .29 -3.97 7/18 -2.28 1.18 2/12 -49 -12 10/7 -2.39 -39 7/19 -92 -63 2/15 1.29 3.90 10/8 .69 .69 7/20 -.98 -1.13 2/16 .69 .69 10/9 -.49 -.34 7/23 .80 .46 2/17 -49 -27 10/10 49 -.31 7/24 29 .01 2/18 .49 23 10/13 .00 -29 Given the above information, calculate the cumulathre ab

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Delta
Market Company
Date
Delta, United, and American Airlines announced purchases of planes on July 18 (7/18),
February 12 (2/12), and October 7 (10/7), respectively.
United
American
Market Company
Market Company
Return Return
Date
Return Return
Date
Return Return
7/12
-49
-77
2/8
-98
-1.36
10/1
.69
33
7/13
.00
.39
2/9
-1.08
-1.36
10/2
.59
.83
7/16
2.30
2.58
2/10
.59
31
10/3
1.29
1.29
7/17
-2.30
-1.98
2/11
.79
4.73
10/6
.29
-3.97
7/18
-2.28
1.18
2/12
-49
-12
10/7
-2.39
-39
7/19
-92
-63
2/15
1.29
3.90
10/8
69
.69
7/20
-.98
-1.13
2/16
.69
.69
10/9
-49
-.34
7/23
.80
.46
2/17
-49
-27
10/10
.49
-.31
7/24
29
.01
2/18
.49
23
10/13
.00
-.29
Given the above information, calculate the cumulative abnormal return (CAR) for these
stocks as a group. All of the stocks have a beta of 1 and no other announcements are
made. (A negative answer should be indicated by a minus sign. Leave no cells blank-
be certain to enter "0" wherever required. Do not round intermediate calculations and
round your answers to 2 decimal places, e.g., 32.16.)
Days from
announcement
Delta
Abnormal returns (R)- RM)
United
American
Sum
Average
abnormal return
Cumulative
abnormal return
-3
-2
0
1
2
3
4
Transcribed Image Text:Delta Market Company Date Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. United American Market Company Market Company Return Return Date Return Return Date Return Return 7/12 -49 -77 2/8 -98 -1.36 10/1 .69 33 7/13 .00 .39 2/9 -1.08 -1.36 10/2 .59 .83 7/16 2.30 2.58 2/10 .59 31 10/3 1.29 1.29 7/17 -2.30 -1.98 2/11 .79 4.73 10/6 .29 -3.97 7/18 -2.28 1.18 2/12 -49 -12 10/7 -2.39 -39 7/19 -92 -63 2/15 1.29 3.90 10/8 69 .69 7/20 -.98 -1.13 2/16 .69 .69 10/9 -49 -.34 7/23 .80 .46 2/17 -49 -27 10/10 .49 -.31 7/24 29 .01 2/18 .49 23 10/13 .00 -.29 Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. All of the stocks have a beta of 1 and no other announcements are made. (A negative answer should be indicated by a minus sign. Leave no cells blank- be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Days from announcement Delta Abnormal returns (R)- RM) United American Sum Average abnormal return Cumulative abnormal return -3 -2 0 1 2 3 4
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