Estimating Abnormal Returns Information. Desmond Ltd announced its earnings results on 20th February. The table shows the price of Desmond shares, the return on a treasury note, and the overall market index for 19th and 20th February. Desmond has a beta of 2 Date Price ($) T-note (%) Market (Index) 19 Feb 4.00 5.25 5000 20 Feb 4.60 5.25 5050 Requirements. Answer the following questions: Q1. What was the return on Desmond shares on 20th February? Q2. What was the return on a treasury note on 20th February? Q3. What was the return on the market on 20th February? Q4. What was the expected return on Desmond shares on 20th February? Q5. What was the abnormal return on Desmond shares on 20th February?
