Over the Past Five Days, the Common Stock of Taylor

question 11

Multiple Choice

Over the past five days, the common stock of Taylor Mfg. had daily returns of −.1, .2, .1, .2, and .3 percent, respectively. For the same five days, the market had daily returns of .1, .3, −.4, .4, and .2 percent, respectively. What is the cumulative abnormal return on Taylor Mfg. stock for this time period?

• A)−.3%
• B)−.1%
• C).0%
• D).1%
• E).3%

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Definitions:

Fringe Benefits

Additional compensation given to employees beyond their base wage or salary, such as health insurance, paid vacation, or retirement plans.

Take-Home Pay

Net income after all deductions like taxes, social security, and retirement contributions are subtracted from an individual's gross salary.

Nominal Wage

The wage paid to workers measured in current money terms, without adjusting for inflation, reflecting the actual amount received.

Price Level

The overall average price of the complete range of goods and services available in the economy.