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The Auto Company (AC) Had Expected Returns and Realized Returns

Question 48

Essay

The Auto Company (AC) had expected returns and realized returns for the periods shown below:
The Auto Company (AC) had expected returns and realized returns for the periods shown below:     Calculate the cumulative abnormal return for the four periods.
Calculate the cumulative abnormal return for the four periods.

Correct Answer:

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ARit = Rit - E(Rit)
ARAC1 = 16 - 15 = 1...

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