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:

Financial Books

Records and documents that capture all financial transactions of a business, facilitating the preparation of financial statements.

Canadian Dollar

The official currency of Canada, often represented by the symbol CAD or C$.

Translation Gain

Profit or gain recognized from converting foreign currency transactions into the functional currency of a business during the consolidation of financial statements.

Direct Quote

An international exchange rate specified as the native currency per foreign currency unit.