2. Problem 5-02

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Problem 5-02

Compute the abnormal rates of return for the following stocks assuming the following systematic risk measures (betas):

Stock	Rit		Rmt		i
B	11.7	%	5.2	%	1.00
F	9.7		8.0		1.15
T	13.4		5.8		1.50
C	12.7		16.0		0.70
E	17.0		11.9		-0.35

R_it = return for stock i during period t R_mt = return for the aggregate market during period t _i = beta for stock i

Use a minus sign to enter negative values, if any. Round your answers to one decimal place.

AR_Bt: %

AR_Ft: %

AR_Tt: %

AR_Ct: %

AR_Et: %