Cumulative Abnormal Returns (CAR)

question 20

Multiple Choice

Cumulative abnormal returns (CAR)

• A) are used in event studies.
• B) are better measures of security returns due to firm-specific events than are abnormal returns (AR).
• C) are cumulated over the period prior to the firm-specific event.
• D) are used in event studies and are better measures of security returns due to firm-specific events than are abnormal returns (AR).
• E) are used in event studies and are cumulated over the period prior to the firm-specific event.