Swenson Co

question 79

Multiple Choice

Swenson Co.announced its merger plans on August 25 and had a daily return of 0.8 percent.Tyler Co.announced its merger plans on August 26 and had a daily return of 0.6 percent.The Underwood Co.announced its merger plans on August 27 and had a daily return of -0.5 percent.The daily market returns for August 25 through August 27 were 0.2,0.3,and -0.4,respectively.What is the combined cumulative abnormal return for the announcement date?

• A)0.0 percent
• B)0.2 percent
• C)0.6 percent
• D)0.8 percent
• E)1.0 percent

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Definitions:

Similarity

The degree to which two or more objects are alike, often influencing human perception and cognitive categorization.

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects or deficits, where an individual fails to perceive an unexpected stimulus that is in plain sight.

Convergence

The process or point at which several things come together to form a new whole, often used in the context of technology, media, or evolutionary biology.

Binocular Disparity

The difference in image location of an object seen by the left and right eyes, resulting from the eyes’ horizontal separation and providing the basis for depth perception.