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Calculate the abnormal returns of the following stock using both the CAPM and Fama- French's 3 factor model: stock A's return is 15%, its market
Calculate the abnormal returns of the following stock using both the CAPM and Fama- French's 3 factor model: stock A's return is 15%, its market beta is 0.9, the market return is 10%, risk free rate is 3%, SMB is 2%, HML is 1%, beta for SMB is 0.5, beta for HML is 2.
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