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Problem 5-02 Compute the abnormal rates of return for the following stocks assuming the following systematic risk measures (betas): Bi 0.75 % Rit =

 

Problem 5-02 Compute the abnormal rates of return for the following stocks assuming the following systematic risk measures (betas): Bi 0.75 % Rit = return for stock i during period t Rmt = return for the aggregate market during period t B; = beta for stock i Use a minus sign to enter negative values, if any. Round your answers to one decimal place. ARst: ARFt: ARTt: ARct: ARET: % % % Stock B F T C E % Rit 12.7% 10.1 15.6 11.4 16.1 Rmt 5.9% 6.8 6.1 14.8 12.2 1.20 1.35 0.75 -0.20

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