Cumulative abnormal returns (CAR)
A) are used in event studies.
B) are better measures of security returns due to firm-specific events than are abnormal returns (AR).
C) are cumulated over the period prior to the firm-specific event.
D) are used in event studies and are better measures of security returns due to firm-specific events than are abnormal returns (AR).
E) are used in event studies and are cumulated over the period prior to the firm-specific event.

Question

Quizplus · Accepted Answer

Cumulative abnormal returns (CAR) are used in event studies and are better measures of security returns due to firm-specific events than are abnormal returns (AR).

Cumulative Abnormal Returns (CAR)