Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.60 and an alpha of .35% per month. A

Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.60 and an alpha of .35% per month. A month later, the market is up by 6.5%, and United Futon is up by 7.5%. What is Futons abnormal rate of return? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Estimating Economic Models

Authors: Atsushi Maki

1st Edition

0415589878, 978-0415589871

More Books

Students also viewed these Finance questions

Question

Find I0 in the network shown using Nortons theorem. 14 2 >

Answered: 1 week ago