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Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 52 and an alpha of -0.37% per month. A
Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 52 and an alpha of -0.37% per month. A month later, the market is up by 6.7%, and Unite ton is up by 7.7%. What is Futon's abnormal rate of return? = 0.77 (-0.0037 + 1.62) = - -1.8463
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