Question
Analysis of a 60 monthly rates of return on the united futon common stock indicates a beta of 1.45 and an alpha of -0.2% per
Analysis of a 60 monthly rates of return on the united futon common stock indicates a beta of 1.45 and an alpha of -0.2% per month. A month later, the market is up by 5% and the united futon is up by 6%. What is Futon's abnormal rate of return?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
