Question
An index model regression applied to past monthly returns in Fords stock price produces the following estimates, which are believed to be stable over time:
An index model regression applied to past monthly returns in Fords stock price produces the following estimates, which are believed to be stable over time:
= 0.10% + 1.1
If the market index subsequently rises by 8% and Fords stock price rises by 7%, what is the abnormal change in Fords stock price?
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The Complete Personal Finance Handbook
Authors: Teri B Clark
1st Edition
160138047X, 978-1601380470
