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:

Online Movie Rentals

The service of renting movies through the internet, allowing users to stream or download films and TV shows for a fee or subscription.

Demand for Good X

The desire and ability of consumers to purchase a specific quantity of Good X at various prices during a certain time period.

Price of X

The amount of money required to purchase a specific good or service named "X."

Demand Curve

An illustration depicting the connection between a good's price and the volume of the good consumers can and are ready to acquire at assorted prices.