Multiple Choice
ALLGO announced at Time t that it was acquiring DoLittle Industries.There were no other announcements affecting these firms.ALLGO's stock had daily returns of +0.1,+0,−0.5,−0.2,+0.1 for Timet − 2 to Timet + 2,respectively.The daily returns on the market were −0.1,+0.2,+0.3,−0.2,and +0.2 for Timet − 2 to Timet + 2,respectively.What is the cumulative abnormal return for these 5 days?
A) −0.7
B) −0.9
C) −0.5
D) −0.8
E) −0.3
Correct Answer:
Verified
Correct Answer:
Verified
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