Question: The Auto Company (AC) had expected returns and realized returns for the periods shown below: PeriodExpected ReturnActual Return 1 15% 16% 2 15% 13% 3

The Auto Company (AC) had expected returns and realized returns for the periods shown below:


PeriodExpected ReturnActual Return

1     15%                    16%

2     15%                     13%

3     15%                    17%

4     15%                     15%


Calculate the cumulative abnormal return for the four periods.

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