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An index model regression applied to past monthly excess returns in ABC Corporation's stock price produces the following estimates, which are believed to be
An index model regression applied to past monthly excess returns in ABC Corporation's stock price produces the following estimates, which are believed to be stable over time: FABC = 0.1% + 1.2 If the market index subsequently rises by 7.4% and ABC's stock price rises by 7%, what is the abnormal change in ABC's stock price? Risk free return during the month is 1%. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Abnormal return
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