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	−.35	−.49	2/8	−.84	−1.08	10/1	.55	.26
7/13	.00	.25	2/9	−.94	−1.08	10/2	.45	.69
7/16	.57	.85	2/10	.45	.17	10/3	1.15	1.15
7/17	−.57	−.29	2/11	.65	1.90	10/6	.15	−1.38
7/18	−2.14	1.26	2/12	−.35	−.06	10/7	−2.25	−.27
7/19	−.89	−.61	2/15	1.15	1.85	10/8	.55	.55
7/20	−.94	−1.12	2/16	.55	.55	10/9	−.35	−.17
7/23	.75	.46	2/17	−.35	−.17	10/10	.35	−.07
7/24	.25	.08	2/18	.35	.16	10/13	.00	−.15

   

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

FIRST IMAGE IS WITHOUT ROUNDING, SO YOU CAN UNDERSTAND LAST COLUMN VALUES

SECOND IMAGE IS FINAL ANSWER WITH 2 DECIMAL ROUNDING