Problemanalysis of 60 monthly rates of return on united, Ask an Expert

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Problem:

Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.47 and an alpha of -0.22% per month. A month later, the market is up by 5.2%, and United Futon is up by 6.2%.

Required:

Question: What is Futon's abnormal rate of return?

Note: Please show how to work it out.

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Category:- Basic Finance
Reference No.:- M91162352

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