Assume Today Is an Earnings Announcement Day for a Firm

question 34

Multiple Choice

Assume today is an earnings announcement day for a firm.For the day,the firm's return was .8 percent,while the risk-free daily rate was .01 percent and the market rate of return was 1.1 percent.The firm's industrial class returned 1.2 percent on average for the day.What was the firm's abnormal return for the day?

• A).8 percent
• B).79 percent
• C)−.3 percent
• D)−.4 percent
• E)−.39 percent

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Definitions:

Flamboyant

A Late French Gothic style of architecture superseding the Rayonnant style and named for the flame-like appearance of its pointed bar tracery.

Stained Glass

The art of creating pictures or patterns using pieces of colored glass, often assembled in windows, with light passing through to produce a decorative effect.

Delicate Ornamentation

The application or incorporation of detailed and finely crafted decorations to enhance the aesthetic appeal of artworks, buildings, or objects.

Hall Church

A type of church architecture characterized by having a nave and aisles of approximately equal height, giving the appearance of a large, open hall.