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2) Compute the abnormal rates of return for the following stocks (ignore differential systematic risk): Stock 1 Rit A B Rmt 7.35% 7.75% 9.75% 14.75%

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2) Compute the abnormal rates of return for the following stocks (ignore differential systematic risk): Stock 1 Rit A B Rmt 7.35% 7.75% 9.75% 14.75% 11.45% 12.25% 10.26% 8.25% 13.57% 19.76% D mol E 3) Compute the abnormal rates of return for the stocks in problem 2, assuming the following systematic risk measures (beta): Stock B/ 1.31 1.15 0.85 1.25 1.28 mo D E

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