**Please show a step by step answer to PART 1

PART 1: Suppose a company announces its dividends on day 0 (event day). The companys percentage returns from 3 days before to 3 days after the announcement, along with market returns, are listed below:

Event day	-3	-2	-1	0	1	2	3
Company	0.3	-0.2	1	5	2	3	-0.3
Market	0.2	0.3	0.5	1.5	1	-0.5	0.1

The companys alpha equals zero and its beta equals 1: = 0, = 1.

Compute abnormal returns and cumulative abnormal returns (CAR) on the 7 days in the sample.

Day	-3	-2	-1	0	1	2	3
Abnormal return
CAR

PART 2: These CAR values indicate that the companys stock price after the announcement was an:

a- efficient reaction

b- overreaction

c- undereaction