help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Over the past 5 days, the common stock of Taylor Mfg

Over the past 5 days, the common stock of Taylor Mfg

Finance

Over the past 5 days, the common stock of Taylor Mfg. had daily returns of 0.3,-0.2, 0.3, 0.4, and 0.2 percent, respectively. For the same 5 days, the market had daily retums of 0.2. 0.4, 0.5, 0.5, and 0.3 percent, respectively. What is the cumulative abnormal return on Taylor Mfg stock for this time period?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Taylor Mfg Return (Rt) Market return (Rm)
0.3% 0.2%
-0.2% 0.4%
-0.3% -0.5%
0.4% 0.5%
0.2% 0.3%
Taylor Mig Return (Rt) Market return (Rm) Abnormal Returns (Rt - Rm) Cumulative Abnormal Returns
0.3% 0.2% 0.1% 0.1%
-0.2% 0.4% -0.6% -0.5%
-0.3% -0.5% 0.2% -0.3%
0.4% 0.5% -0.1% -0.4%
0.2% 0.3% -0.1% -0.5%

Cumulative Abnormal Return on Taylor Mfg. = \sum Abnormal Returns

Cumulative Abnormal Return on Taylor Mfg. = 0.1% - 0.6% + 0.2% - 0.1% -0.1%

Cumulative Abnormal Return on Taylor Mfg. = -0.5%

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)