Question: 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


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 (718). 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 certaln to enter "O" wherever required. Do not round Intermedlate calculations. Round your answers to 1 declmal place.) Ross Co Westerfield, Inc Jordan Company Market Company Market Company Market Company Date Return Return Date Return Return Date Return Return 0.1 7/12 7/13 7/16 0.4 2/8 0.3 2/9-0.2 -0.4 10/2 1.2 0.5 0.4 2/10 0.1-0.4 10/1 1.3 0.5 0.5 0.6 0.9 0.5 0.6 10/3 0.8 1.3 2 10/6 -0.1 -0.8 7/18 1.3 2/12 0.2 2/15 0.2 2/16 1.8 10/8 1.30.5 0.6 10/9 -0.5 -0.5 0 10/10 0.1 0.1 7/20 7/23 7/24 0.9 0.7 0 2/18 0.4 10/13 -0.2 -0.6
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