Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12),...
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Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Delta Market Company United Market Company American Market Company Date Return Return Date Return Return Date Return Return 7/12 -.36 -.51 2/8 -.85 -1.10 10/1 .56 .25 7/13 .00 .26 2/9 -.95 -1.10 10/2 .46 .71 7/16 .61 .91 2/10 .46 .16 10/3 1.16 1.16 7/17 -.61 -.31 2/11 .66 2.15 10/6 .16 -1.63 7/18 -2.15 1.05 2/12 -.36 -.05 10/7 -2.26 -.46 7/19 -.90 -.60 2/15 1.16 2.01 10/8 .56 .56 7/20 -.95 -1.15 2/16 .56 .56 10/9 -.36 -.16 7/23 .76 .45 2/17 -36 -.16 10/10 .36 -.06 7/24 .26 .07 2/18 .36 .15 10/13 .00 -.16 Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. All of the stocks have a beta of 1 and no other announcements are made. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Abnormal returns (R,- RM) Days from announcement Delta United American Sum Average abnormal return Cumulative abnormal return -4 -0.20 -0.20 -0.20 x -0.60 x -3 0.20 -0.10 0.00 x 0.30 -2 0.20 -0.20 0.00 0.00 0.00 -1 0.20 0.00 0.00 x 0.00 0.00 0 3.30 0.20 1.90 0.00 X 1 0.40 0.00 0.10 0.00x 2 -0.10 0.00 0.10 0.00 3 -0.30 0.10 0.00 x 0.00x 4 -0.10 0.00 -0.10 0.00 Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively. Delta Market Company United Market Company American Market Company Date Return Return Date Return Return Date Return Return 7/12 -.36 -.51 2/8 -.85 -1.10 10/1 .56 .25 7/13 .00 .26 2/9 -.95 -1.10 10/2 .46 .71 7/16 .61 .91 2/10 .46 .16 10/3 1.16 1.16 7/17 -.61 -.31 2/11 .66 2.15 10/6 .16 -1.63 7/18 -2.15 1.05 2/12 -.36 -.05 10/7 -2.26 -.46 7/19 -.90 -.60 2/15 1.16 2.01 10/8 .56 .56 7/20 -.95 -1.15 2/16 .56 .56 10/9 -.36 -.16 7/23 .76 .45 2/17 -36 -.16 10/10 .36 -.06 7/24 .26 .07 2/18 .36 .15 10/13 .00 -.16 Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. All of the stocks have a beta of 1 and no other announcements are made. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Abnormal returns (R,- RM) Days from announcement Delta United American Sum Average abnormal return Cumulative abnormal return -4 -0.20 -0.20 -0.20 x -0.60 x -3 0.20 -0.10 0.00 x 0.30 -2 0.20 -0.20 0.00 0.00 0.00 -1 0.20 0.00 0.00 x 0.00 0.00 0 3.30 0.20 1.90 0.00 X 1 0.40 0.00 0.10 0.00x 2 -0.10 0.00 0.10 0.00 3 -0.30 0.10 0.00 x 0.00x 4 -0.10 0.00 -0.10 0.00
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