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) -.7
B) -.8
C) -.5
D) -.10
E) -.3
Correct Answer:
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