A.C.Pharmaceutical announced FDA approval for a new drug on October 12^th.X.Y.Drug Co.announced approval for its new drug on October 14^th.No other information was released that would affect returns over the period.What is the combined cumulative abnormal return for the 5 day period commencing 2 days prior to the approval announcement date? Use the following data to answer this question.No trading occurred on October 15^th and 16^th.

Question

A.C.Pharmaceutical announced FDA approval for a new drug on October 12<sup>th</sup>.X.Y.Drug Co.announced approval for its new drug on October 14<sup>th</sup>.No other information was released that would affect returns over the period.What is the combined cumulative abnormal return for the 5 day period commencing 2 days prior to the approval announcement date? Use the following data to answer this question.No trading occurred on October 15<sup>th</sup> and 16<sup>th</sup>. A) 0.6 percent B) 1.0 percent C) 1.2 percent D) 1.4 percent E) 1.6 percent

Quizplus · Accepted Answer

11ea6d0e_c3f9_33c5_b3c7_750a19361216_TB1223_00 11ea6d0e_c3f9_5ad6_b3c7_0d46f444da5a_TB1223_00 11ea6d0e_c3f9_5ad7_b3c7_4d570961be65_TB1223_00

ACPharmaceutical Announced FDA Approval for a New Drug on October