Here are alphas and betas for Est?e Lauder and Caterpillar Tractor for the 60 months ending June

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Here are alphas and betas for Est?e Lauder and Caterpillar Tractor for the 60 months ending June 2017. Alpha is expressed as a percent per month.

Explain how these estimates would be used to calculate an abnormal return.

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Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Question Posted: Sep 27, 2019 12:39 PM

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Here are alphas and betas for Est?e Lauder and Caterpillar Tractor for the 60 months ending June

Question:

Alpha Beta 0.48 0.70 Estée Lauder -0.41 1.26 Caterpillar Tractor

Step by Step Answer:

The estimates are first substituted in the market model Then the re...View the full answer

Principles of Corporate Finance

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