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:

Operating Activities

Transactions and events that affect the net income of a business, reflected in its cash flow from operations and including everyday functions like selling products and paying wages.

Comparative Balance Sheet

A financial statement that presents a company's financial position at two or more points in time, allowing for comparison.

Net Cash

The amount of cash available after accounting for all cash receipts and payments.

Cash Dividend

A sum of money given by a company to its shareholders, typically from the company's profits.