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3 September, 02:22

A car maker announced a recall for faulty brakes The company stock returned 004 the day before the announcement 001 the day of the announcement and 0045 the day after the announcement The market average was 006 0072 and 004 for the three days respectively The daily beta for the car maker is 9 What are the three abnormal returns for the car maker's stock?

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  1. 3 September, 06:18
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    The correct answer is -.0014, -.00748,.0009

    Step-by-step explanation:

    The question lacked proper detail and options but by finding on google I found the complete question which is

    A car maker announced a recall for faulty brakes. The company stock returned. 004 the day before the announcement; -.001 the day of the announcement and. 0045 the day after the announcement. The market average was. 006,.0072 and. 004 for the three days respectively. The daily beta for the car maker is. 9. What are the three abnormal returns for the car maker's stock? A. -.002, -.0082,.0005

    B. -.002, -.00748,.0005

    C ...01,.0062,.0085

    D.-.0014, -.00748,.0009 Correct answer
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