Cumulative Abnormal Returns
Response to the following problem:
Iberia Airlines, Air France-KLM and Lufthansa announced purchases of planes on 18 July (18/7), 12 February (12/2) and 7 October (7/10), respectively. Given the following information, calculate the cumulative abnormal return (CAR) for these equities as a group. Graph the result and provide an explanation. All of the stocks have a beta of 1, and no other announcements are made.