The Common Stock of Kimberlee Mfg

question 50

Multiple Choice

The common stock of Kimberlee Mfg. had daily returns of .2, −.1, .5, .4, and .3 percent, over the past five days, respectively. For the same five-day period, the market had daily returns of .1, .3, −.2, .5, and .1 percent, respectively. What is the cumulative abnormal return on Scott Mfg. stock for this time period?

• A)−.5%
• B)−.2%
• C).0%
• D).2%
• E).5%

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Definitions:

Common Resources

Goods that are non-excludable and rival in consumption, such as fisheries, forests, and the atmosphere, which are accessible to all but can be depleted by overuse.

Overuse

Refers to the excessive use of a resource to the point where it diminishes its availability or quality.

Common Resource

A resource like air or water that is not owned by anyone, cannot be easily excluded from use, and is available for use by more than one person or group.

Nonexcludable

A characteristic of a good or service that prevents individuals from being effectively excluded from its use or benefits.