The stock has an Alpha of 2% and a Beta of 1.2. The market return is 8%

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The stock has an Alpha of 2% and a Beta of 1.2. The market return is 8% and the risk free rate is 1%. The Expected return is 11%.

what is the firm specific return (residual) next year?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Posted Date: Apr 09, 2024 11:18 AM

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The stock has an Alpha of 2% and a Beta of 1.2. The market return is 8%

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To calculate the firmspecific return residual next year we need to subt... View the full answer

Fundamentals of Corporate Finance

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