How to Calculate Cumulative Abnormal Return | Sapling
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How to Calculate Cumulative Abnormal Return | Sapling
Abnormal stock returns represent the difference in return between an individual stock and a market index. Cumulative abnormal return is calculated by summing abnormal returns over a period of time. This can help you determine if changes in a stock price were due to that company or the market.
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Cumulative Abnormal Returns The following figures present the results of four cumulative abnormal returns (CAR) studies. Indicate whether the results of each study support, reject, or are inconclusive about the semistrong form of the efficient market hypothesis. In each figure, Time 0 is the date of an event. | Numerade
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