Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.45

Question:

Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.45 and an alpha of - .2% per month. A month later, the market is up by 5%, and United Futon is up by 6%. What is Futon’s abnormal rate of return?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...