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A stock returns 20% during the observation period. The average return on the market was 6% during the period. Beta (b) was observed to be
A stock returns 20% during the observation period. The average return on the market was 6% during the period. Beta (b) was observed to be .80 with an excess market return of 10%. Given this information what is the stock's abnormal return? Show formula please.
Multiple choice question.
a) 8%
b) 6%
c) 14%
d) 34%
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