Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

not -0.27, -1.93 can u answer this? Problem 13-15 Abnormal returns Analysis of 60 monthly rates of return on United Futon common stock indicates a

image text in transcribed

not -0.27, -1.93

can u answer this?

Problem 13-15 Abnormal returns Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.52 and an alpha of -0.27% per month. A month later, the market is up by 5.7%, and United Futon is up by 6.7%. What is Futon's 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.) Answer is complete but not entirely correct. Rate of return (2.39) %

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

Money And Capital Markets

Authors: Peter Rose, Milton Marquis

10th Edition

0077235800, 9780077235802

More Books

Students also viewed these Finance questions

Question

Describe the basic structure of a union.

Answered: 1 week ago

Question

Discuss laws affecting collective bargaining.

Answered: 1 week ago