The Following Are the Daily Returns for Both the Overall

question 49

Multiple Choice

The following are the daily returns for both the overall market and for Coastal Engineering, Inc. What is the cumulative abnormal return on Coastal Engineering, Inc., stock for this five-day period?
$$\begin{array} { r r r } \text { Date } & \text { R(m) } & \text { Alpha } \\\text { 4-Aug } & 1.00\%& 1.10\% \\\text { 5-Aug } & - .30\% & .20\% \\\text { 6-Aug } & - .20\% & .30\%\\\text { 7-Aug } & .50 \% & - .30\% \\\text { 9-Aug } & .20\% & - .10\%\end{array}$$

• A)-1.2%
• B)-.5%
• C)0%
• D).2%
• E)1.2%

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Definitions:

Times Interest Earned Ratio

Operating income divided by interest expense.

Liquidity Ratios

Ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt.