If the Abnormal Return for a Stock During the First

question 6

Multiple Choice

If the abnormal return for a stock during the first week is +5% and +3% during the second week,what is the abnormal return for the two-week period?

• A)5%
• B)3%
• C)8.15%
• D)8.00%

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Definitions:

Revenue Account

An account that tracks the income earned by a company before any expenses are deducted, often classified by source.

Accounting Process

A series of procedures and steps taken for the purpose of accounting, including recording, classifying, and summarizing financial transactions.

Accounting Equation

The foundational principle of accounting, stating that assets equal liabilities plus equity.

Source Documents

Original records that contain the details of a business transaction, such as invoices, receipts, and contracts.