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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: rFord = 3% + 5rM If the market index subsequently rises by 0.09 (i.e., rM=0.09) and Fords stock price rises by 0.06, what is the abnormal change in Fords stock price?
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