Here are alphas and betas for Intel and Conagra for the 60 months ending October 2001. Alpha

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Here are alphas and betas for Intel and Conagra for the 60 months ending October 2001.

Alpha is expressed as a percent per month.

Explain how these estimates would be used to calculate an abnormal return.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 06:52 AM

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Here are alphas and betas for Intel and Conagra for the 60 months ending October 2001. Alpha

Question:

Alpha Beta Intel .77 1.61 Conagra .17 .47

Step by Step Answer:

The estimates are first substituted in the market model Then t...View the full answer

Principles of Corporate Finance

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