Question: 1. Problem 5-01 eBook Problem 5-01 Compute the abnormal rates of return for the following stocks during period t (ignore differential systematic risk): Stock R

1. Problem 5-01

eBook

Problem 5-01

Compute the abnormal rates of return for the following stocks during period t (ignore differential systematic risk):

Stock Rit Rmt
B 10.4 % 5.1 %
F 9.3 8.3
T 14.6 7.4
C 12.7 15.9
E 16.3 11.3

Rit = return for stock i during period t Rmt = return for the aggregate market during period t

Use a minus sign to enter negative values, if any. Round your answers to one decimal place.

ARBt: %

ARFt: %

ARTt: %

ARCt: %

AREt: %

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