Question: Cumulative Abnormal Returns ( LO 2 , CFA 2 ) On November 1 4 , Thorogood Enterprises Page 2 4 8 announced that the public

Cumulative Abnormal Returns (LO2, CFA2) On November 14, Thorogood Enterprises
Page 248
announced that the public and acrimonious battle with its current CEO had been
resolved. Under the terms of the deal, the CEO would step down from his position immediately. In
exchange, he was given a generous severance package. Given the information below, calculate the
cumulative abnormal return (CAR) around this announcement. Assume the company has an
expected return equal to the market return. Graph and interpret your results. Do your results support
market efficiency?
Cumulative Abnormal Returns (LO2, CFA2) On November 14, Thorogood Enterprises Page

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