The following is the daily returns for both the overall market and for Dagwood Industries. What is the cumulative abnormal return on Dagwood stock for these 5 days?

$$\begin{array} { l c c }
\underline{\text { Date }} & \underline{\text { Market Return (\%) }} &\underline{ \text { Dagwood Return (\%) }} \
3 / 15 & 0.3 \% & 0.4 \% \
3 / 16 & - 0.1 & 0.2 \
3 / 17 & 0.2 & 0.8 \
3 / 18 & 0.3 & 0.5 \
3 / 19 & - 0.6 & - 0.4
\end{array}$$
A) 0.8 percent
B) 1.0 percent
C) 1.2 percent
D) 1.4 percent
E) 1.6 percent

Question

The following is the daily returns for both the overall market and for Dagwood Industries. What is the cumulative abnormal return on Dagwood stock for these 5 days?

$$\begin{array} { l c c } 
\underline{\text { Date }} & \underline{\text { Market Return (\%) }} &\underline{ \text { Dagwood Return (\%) }} \
 3 / 15 & 0.3 \% & 0.4 \% \
3 / 16 & - 0.1 & 0.2 \
3 / 17 & 0.2 & 0.8 \
3 / 18 & 0.3 & 0.5 \
3 / 19 & - 0.6 & - 0.4
\end{array}$$
A) 0.8 percent
B) 1.0 percent
C) 1.2 percent
D) 1.4 percent
E) 1.6 percent

Quizplus · Accepted Answer

The Answer of The following is the daily returns for both the overall market and for Dagwood Industries. What is the cumulative abnormal return on Dagwood stock for these 5 days?

$$\begin{array} { l c c } 
\underline{\text { Date }} & \underline{\text { Market Return (\%) }} &\underline{ \text { Dagwood Return (\%) }} \
 3 / 15 & 0.3 \% & 0.4 \% \
3 / 16 & - 0.1 & 0.2 \
3 / 17 & 0.2 & 0.8 \
3 / 18 & 0.3 & 0.5 \
3 / 19 & - 0.6 & - 0.4
\end{array}$$
A) 0.8 percent
B) 1.0 percent
C) 1.2 percent
D) 1.4 percent
E) 1.6 percent

The Following Is the Daily Returns for Both the Overall