The Auto Company (AC) had expected returns and realized returns for the periods shown below:
$\begin{array}{ccc}
\text { Period } & \text { Expected Return } & \text { Actual Return } \
\hline 1 & 15 \% & 16 \% \
215 \% & 13 \% & \
3 & 15 \% & 17 \% \
415 \% & 15 \% &
\end{array}$
Calculate the cumulative abnormal return for the four periods.

Question

The Auto Company (AC) had expected returns and realized returns for the periods shown below:
 $\begin{array}{ccc}
\text { Period } & \text { Expected Return } & \text { Actual Return } \
\hline 1 & 15 \% & 16 \% \
215 \% & 13 \% & \
3 & 15 \% & 17 \% \
415 \% & 15 \% &
\end{array}$
 Calculate the cumulative abnormal return for the four periods.

Quizplus · Accepted Answer

The Answer of The Auto Company (AC) had expected returns and realized returns for the periods shown below:
 $\begin{array}{ccc}
\text { Period } & \text { Expected Return } & \text { Actual Return } \
\hline 1 & 15 \% & 16 \% \
215 \% & 13 \% & \
3 & 15 \% & 17 \% \
415 \% & 15 \% &
\end{array}$
 Calculate the cumulative abnormal return for the four periods.

The Auto Company (AC) Had Expected Returns and Realized Returns