**Incorrect calculation of Alpha and Beta**

Dear Sir,

I believe that the way Alpha and Beta is calculated in the Basis Abnormal Return tool of your website is incorrect. The formula for Alpha should be as follows: Intercept(stock return of firm. return on index) while the ES with excel file that has been provided to give evidence that the results of your event study methodology tool are correct uses Intercept(return on index, stock return of firm). Same goes for Beta.

Could you please clarify this issue.

I hope to hear from you soon.

Khurram Shahzad, PhD.

**Calculating the alpha and beta parameters.**

How to i calculate the beta and alpha parameters in my market model.

**Possible error in the demo work of J-test**

Dear Dr Muller,

I am Vineet, a PhD student and who is referring to your demo work in excel for various event study methodology.

I appreciate the work done here and I find it very helpful.

I am currently referring to your work done on J-Test on the following page:

http://www.eventstudytools.com/significance-tests

I tried to replicate the methodology and got different results. I wish to resolve the inconsistencies.

Calculation of average correlation is certainly one problematic area. The paper says to use Residuals in estimation period to calculate that. However, your work is using Standardized Residuals in estimation period. Probably, I am misinterpreting the paper. Please verify.

Also, would it be possible for you to extend your work to demonstrate t-test for SCARs as well. That is where I think the analysis gets very tricky. And I am struggling a lot.

Thank you very much for your help,

Vineet

**Estimation window adjustement**

I am trying to conduct event studies for a large sample and I am using your website tools in order to get my abnormal returns, t-tests.

Your template shows estimation window length as:

-2 ; 2 ; -11 ; 120

However, my teacher told me to examine a larger estimation window, of 240 days, with 40 days prior to the event date. How should I put the data in excel in order to extend the window?