The Following Are the Daily Returns for Both the Overall

question 29

Multiple Choice

The following are the daily returns for both the overall market and for Omega, Inc. What is the cumulative abnormal return on Omega, Inc., stock for these five days?
$\begin{array}{lrr}\text { Date } & \text { R(m) }& \text { Omega }\\24-\mathrm{Nov} & 1.208 & 1.20\% \\25-\mathrm{Nov} & -.408 & .10\% \\26-\mathrm{Nov} & -.108 & 1.00\% \\27-\mathrm{Nov} & .408 & -.50\% \\28-\mathrm{Nov} & .508 & -.70\%\end{array}$

• A)-.8%
• B)-.5%
• C)-.1%
• D).2%
• E).5%

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Definitions:

Hypotheticals

Hypotheticals refer to situations or scenarios that are imagined or speculated about, often used in reasoning or in discussing possible outcomes.

Principle

A basic principle or statement that forms the basis for a belief system or for logical thinking.

Rational

The quality of being based on or in accordance with reason or logic, often related to the ability to think, understand, and form judgments by a process of logic.

Fully Rational Being

An entity capable of comprehensive reasoning, capable of making logically consistent decisions based on full information.