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:

Heredity

The transmission of genetic characteristics from parents to offspring, influencing various traits and predispositions.

Adoptive Parents

Individuals who become parents through the legal process of adopting a child.

Mesoderm

The central layer of the embryo from which the bones and muscles develop.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the period from implantation until about the eighth week of pregnancy.