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4. Suppose the market follows CAPM, where the market portfolio has expected return of 0.22. For a stock with beta of 2 and expected return
4. Suppose the market follows CAPM, where the market portfolio has expected return of 0.22. For a stock with beta of 2 and expected return of 0.06, what is the abnormal return of the stock?
0 | ||
0.5 | ||
0.45 | ||
0.38 | ||
-0.678571429 |
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