cumulative abnormal return (CAR)

Definition

An abnormal return is the difference between the expected return and the actual return of a stock. A cumulative abnormal return (CAR) is the sum of the abnormal returns. The CAR is used to determine the effect that events such as lawsuits or buyouts have on stock prices. It is also helpful for determining how accurate the asset pricing model is in calculating the expected return.
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cumulative Cumulative Bulletin (CB)