Glossary of economics research

Results of search for CAR follow:

CAR: stands for Cumulative Average Return.

A portfolio's abnormal return (AR) at each time is ARt=Sum from i=1 to N of each arit/N. Here arit is the abnormal return at time t of security i.

Over a window from t=1 to T, the CAR is the sum of all the ARs.

Contexts: finance


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