The Following Are the Daily Returns for Both the Overall

question 17

Multiple Choice

The following are the daily returns for both the overall market and for Alpha, Inc. What is the cumulative abnormal return on Alpha, Inc., stock for these five days?
$\begin{array}{lrr}\text { Date } &\text { R(m) }& \text { Alpha }\\24-\text { oct } & 1.508 & 1.308 \\25 \text {-oct } & -.408 & .208 \\26 \text {-oct } & -.108 & .508 \\27 \text {-oct } & .308 & -.208 \\28-0 c t & 608 & -508\end{array}$

• A)-.8%
• B)-.6%
• C)-.1%
• D).2%
• E).5%

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Definitions:

Food

Nutritious substances that people or animals eat or drink to maintain life and growth.

Relatively Elastic

Describes a situation where a small change in price leads to a larger change in quantity demanded or supplied.

Price Decline

A decrease in the cost of goods or services, often resulting from lower demand, increased supply, or external market factors.

Supply Curve

A curve that illustrates the supply for a product by showing how each possible price (on the vertical axis) is associated with a specific quantity supplied (on the horizontal axis).