Question 14 Numerical question, show your work: On November 21, 2018, Kobe Bryant Technologies announced that it was revising its fourth quarter results as a result of rene recognition problems discovered by its auditors during the year end financial review. The revision lowered revenues by $125 million and earnings per share by 4 cents. Kobe Bryant's stock price was hammered because of the dismal announcement. The company's stock opened the day at $35, but the stock price closed at $26.25 at the end of the day on November 21: a sharpone day decline. On the same day, the S&P 500 (the overall market), however, rose by 3%. The prevailing risk-free rate of the econom during that time was 1%, and the company's Beta (B) was estimated to be 1.25. (a) What was Kobe Bryant Technologies' Actual or Raw Return on November 21, 2018? [3] (b) Use the CAPM framework to find how much Kobe Bryant Technologies' return changed on November 21, 2018 purely due tott market movement? [4] (c) What was Kobe Bryant Technologies' Abnormal Return on November 21, 2018? [3] d) Did the dismal/unfavorable announcement of revenue-recognition problems change the company's risk? Explain. [2] 15 3 Tu A - A - I E3 3 1 1 x x 3- R v mene 12pt - Paragraph