Question

Delta, United, and American Airlines announced purchases of planes on July 18 (7/18), February 12 (2/12), and October 7 (10/7), respectively.

  

Delta			United			American
Date	Market Return	Company Return	Date	Market Return	Company Return	Date	Market Return	Company Return
7/12	−.34	−.47	2/8	−.83	−1.06	10/1	.54	.27
7/13	.00	.24	2/9	−.93	−1.06	10/2	.44	.67
7/16	.54	.80	2/10	.44	.18	10/3	1.14	1.14
7/17	−.54	−.28	2/11	.64	1.66	10/6	.14	−1.14
7/18	−2.13	1.25	2/12	−.34	−.07	10/7	−2.24	−.28
7/19	−.88	−.62	2/15	1.14	1.70	10/8	.54	.54
7/20	−.93	−1.09	2/16	.54	.54	10/9	−.34	−.18
7/23	.74	.47	2/17	−.34	−.18	10/10	.34	−.08
7/24	.24	.09	2/18	.34	.17	10/13	.00	−.14

   

Given the above information, calculate the cumulative abnormal return (CAR) for these stocks as a group. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

  

	Abnormal returns (Ri – R­M)
Days from announcement	Delta	United	American	Sum	Average abnormal return	Cumulative abnormal return
−4
−3
−2
−1
0
1
2
3
4

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE