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An index model regression applied to past monthly return in Fords stock price produces the following estimates, which are believed to be stable over time:
An index model regression applied to past monthly return in Fords stock price produces the following estimates, which are believed to be stable over time:
rFord = -0.10% + 1.1rm
If the market index subsequently rises by 8% and Fords stock price rises by 7%, what is the abnormal change in Fords stock price?
0.30% |
0.10% |
1.70% |
1.90% |
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