Problem 7-5 Cumulative Abnormal Returns (LO2, CFA2) 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. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.) Date 7/12 7/13 7/16 7/17 7/18 7/19 7/20 7/23 7/24 Ross Co. Market Company Return Return -0.4 -0.5 1.9 0.3 -0.3 0.2 -0.6 -0.2 -0.1 1.3 -2.6 @ -0.9 -0.1 0.6 0.4 1.9 @ Westerfield, Inc. Market Company Date Return Return 2/8 -0.4 -0.5 2/9 -0.5 -0.5 2/10 0.2 0.6 2/11 0.4 2.8 2/12 -0.1 0.1 2/15 1.2 2 2/16 0.7 0.7 2/17 -0.1 2/18 2.3 0.4 Jordan Company Market Company Date Return Return 10/1 2.1 0.9 10/2 2 0.9 10/3 0.5 1.3 10/6 -0.1 -0.1 10/7 -1.5 -0.1 10/8 1.2 0.5 10/9 -0.5 -0.4 10/10 0.1 -0.1 10/13 -0.4 -0.6 Days from announcement Abnormal returns (Ri - RM) W'field Jordan Ross Sum Average abnormal return Cumulative average residual Abnormal returns (Ri - RM) Days from announcement Ross W'field Jordan Sum Average abnormal return Cumulative average residual -3 -2 -1 0 1 2 3 4