Question: 1) What is a stock's realized abnormal return if the stock had a 3% return and the stock had a Beta=1.28, an Alpha=0 and the
1) What is a stock's realized abnormal return if the stock had a 3% return and the stock had a Beta=1.28, an Alpha=0 and the excess market return was 3.6%. assume the risk free rate is 0%.
Please use 5 decimal places in your response. Please write negative returns using the "-" symbol, so a negative 1% return would be written as -.01
2) If a stock has a(Alpha)=0.002, b(Beta)=1.5,
Using the market model, find the expected percent return for the above stock if the excess market return is expected to be 2%. Assume the risk free return is 0%
Please use 5 decimal places in your response
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