Southern Goods Announced at Time T That It Was Replacing

question 37

Multiple Choice

Southern Goods announced at Time t that it was replacing its CEO.There were no other announcements affecting the firm.The stock had daily returns of 0.1,+0.2,−0.8,−0.3,+0.5 for Time_{t − 2} to Time_{t + 2},respectively.The daily returns on the market were 0.1,+0.2,−0.4,−0.2,and +0.2 for Time_{t − 2} to Time_{t + 2},respectively.What is the cumulative abnormal return for these 5 days?

• A)0.1
• B)0.3
• C)−0.2
• D)−0.1
• E)−0.3

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Definitions:

Duality

The existence of two parts or aspects of something that are either complementary or in opposition to each other.

Uncertainty Principle

A fundamental concept in quantum mechanics proposed by Werner Heisenberg, stating that the position and momentum of a particle cannot both be precisely measured at the same time.

Abstract Principles

Fundamental ideas or concepts that are not tied to any specific concrete instance or physical manifestation but serve as the foundation for further reasoning or conduct.

Legal Ecosystem

The complex network of laws, regulations, institutions, and actors that constitute the legal environment within a jurisdiction.