Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to mar
ID: 2649546 • Letter: R
Question
Ross Co., Westerfield, Inc., and Jordan Company announced a new agreement to market their respective products in China on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Given the information below, calculate the cumulative abnormal return (CAR) for these stocks as a group. Assume all companies have an expected return equal to the market return. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers for all columns to 1 decimal place.)
Ross Co. Westerfield, Inc. Jordan Company Date Market
Return Company
Return Date Market
Return Company
Return Date Market
Return Company
Return 7/12 -0.1 -0.6 2/8 -0.1 -0.6 10/1 0.7 0.8 7/13 0.5 0.3 2/9 -0.4 -0.6 10/2 0.6 0.8 7/16 0.2 0.4 2/10 0.2 0.6 10/3 0.5 1.3 7/17 -0.6 -0.2 2/11 0.4 1.4 10/6 -0.1 -0.5 7/18 -1.5 1.3 2/12 -0.1 0.1 10/7 -2 -0.5 7/19 -1.2 -0.2 2/15 0.9 1.8 10/8 0.3 0.3 7/20 -0.9 -0.5 2/16 0.7 0.3 10/9 -0.5 -0.8 7/23 0.6 0.4 2/17 -0.1 0 10/10 0.1 -0.1 7/24 0.5 0 2/18 0.9 0.4 10/13 -0.3 -0.6
Explanation / Answer
Ross Co. Westernfiels Jordan Date Abnormal Return Abnormal Return Abnormal SUM Average Abnormal Return Cumulative Average Residual -4 -0.5 -0.5 0.1 -0.9 -0.3 -0.3 -3 -0.2 -0.2 0.2 -0.2 -0.1 -0.4 -2 0.2 0.4 0.8 1.4 0.5 0.1 -1 0.4 1.0 -0.4 1.0 0.3 0.4 0 2.8 0.2 1.5 4.5 1.5 1.9 1 1.0 0.9 0.0 1.9 0.6 2.5 2 0.4 -0.4 -0.3 -0.3 -0.1 2.4 3 -0.2 0.1 -0.2 -0.3 -0.1 2.3 4 -0.5 -0.5 -0.3 -1.3 -0.4 1.9
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.