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:

Express Warranty

An explicit promise made by a seller about the quality or functionality of goods or services.

Puffing

Exaggerated or superlative comments or opinions that are subjective rather than objective, commonly found in sales and advertising.

Gorgeous

Describing something or someone as stunningly beautiful or visually very appealing.

UCC

Stands for Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States to harmonize the law of sales and other commercial transactions.