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B 2 You analyze empirically the return of stock i using a market model regression: Rit Rft = ai + Bim (Rmt Rft) +
B 2 You analyze empirically the return of stock i using a market model regression: Rit Rft = ai + Bim (Rmt Rft) + Eit where Rmt is the return on a value-weighted stock index. You discover that a > 0.
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