Question: Compute the abnormal rates of return for the five stocks in Problem 1 assuming the following systematic risk measures (betas): Stock i B ......... 0.95

Compute the abnormal rates of return for the five stocks in Problem 1 assuming the following systematic risk measures (betas):

Stock         βi

B .........   0.95

F .........   1.25

T .........   1.45

C .........   0.70

E ......... −0.30

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