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What is the cumulative abnormal return for these five days

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Reference no: EM132272042

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 -.2, +.1, -.5, -.1, +.1 for Time t - 2 to Time t + 2, respectively. The daily returns on the market were -.1, +.2, +.1, -.2, and +.2 for Time t - 2 to Time t + 2, respectively. What is the cumulative abnormal return for these five days?

A -.5

B -.7

C -.3

D -.10

E -.8

Reference no: EM132272042

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