Solved

Franklin Mills Announced at Time T That It Just Sold

Question 41

Multiple Choice

Franklin Mills announced at Time t that it just sold its worst performing division.There were no other announcements affecting the firm.The firm's stock had daily returns of −0.2,+0.1,+0.4,−0.1,+0.2 for Timet − 2 to Timet + 2,respectively.The daily returns on the market were −0.1,+0.2,+0.3,−0.2,and +0.2 for Timet − 2 to Timet + 2,respectively.What is the cumulative abnormal return for these 5 days?


A) 0.3
B) 0.8
C) 1.1
D) 0.5
E) 0.6

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents