The Market Adjusted Model is another simple approach used in event studies to estimate the expected returns of a stock and calculate its abnormal returns during an event window. This model is less complex than the Market Model, as it assumes that a stock's expected return is equal to the market return, without considering any stock-specific factors. The Market Adjusted Model is particularly useful in situations where the estimation of individual stock parameters (such as alpha and beta) is not feasible or desired, and a basic benchmark for comparison is needed.
See also
Other eventstudy-models:
BHARModel,
Carhart4FactorModel,
ComparisonPeriodMeanAdjustedModel,
DCCGARCHModel,
FamaFrench3FactorModel,
FamaFrench5FactorModel,
GARCHModel,
LinearFactorModel,
LogReturn,
MarketModel,
ModelBase,
ReturnCalculation,
RollingWindowModel,
SimpleReturn,
VolatilityModel,
VolumeModel
Super class
ModelBase -> MarketAdjustedModel