Question: Calculate three-day return earned by your firm for the period from the day before the announcement continuing through the day after the announcement date; and

  1. Calculate three-day return earned by your firm for the period from the day before the announcement continuing through the day after the announcement date; and two-day return earned by your firm for the period from the day of the announcement to the day

after the announcement date.

  1. Calculate the market return for the corresponding periods in (ii).
  2. Calculate the excess: (ii) - (iii)

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