Stock	Rit	Rmt	Beta
A	12.10%	5.20%	0.96
B	11.20%	8.80%	1.30
C	15.10%	10.20%	1.50
D	13.00%	16.00%	0.78
E	17.10%	13.30%	(0.32)

1. Given the stock information above,

  a. Compute the abnormal rates of return for each stock during period t (ignore differential systematic risk)

  b. Compute the abnormal rates of return for the above stocks, assuming the systematic risk measures (betas) given.

  c. Compare the abnormal returns in parts (a) and (b) and discuss the reason for the difference in each case.