Business, 17.04.2020 20:26 rose80123

Problem 14-1 Cumulative Abnormal Returns

Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively.

Delta United American
Date Market
Return Company
Return Date Market
Return Company
Return Date Market
Return Company
Return
7/12 ?.44 ?.67 2/8 ?.93 ?1.26 10/1 .64 .38
7/13 .00 .34 2/9 ?1.03 ?1.26 10/2 .54 .73
7/16 1.55 1.73 2/10 .54 .36 10/3 1.24 1.24
7/17 ?1.55 ?1.33 2/11 .74 3.73 10/6 .24 ?2.97
7/18 ?2.23 1.13 2/12 ?.44 ?.17 10/7 ?2.34 ?.43
7/19 ?.87 ?.68 2/15 1.24 3.05 10/8 .64 .64
7/20 ?.93 ?1.18 2/16 .64 .64 10/9 ?.44 ?.19
7/23 .75 .51 2/17 ?.44 ?.31 10/10 .44 ?.23
7/24 .24 .06 2/18 .44 .28 10/13 .00 ?.24

Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. (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 United American Sum Average abnormal return Cumulative average residual
?4
?3
?2
?1
0
1
2
3
4

Answers: 2

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Problem 14-1 Cumulative Abnormal Returns

Delta, United, and American Airlines announced...

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