Question: 8. ABC stock just earned 5% while the market earned 5% over the same period and the risk-free rate was 2%. Given that the Beta
8. ABC stock just earned 5% while the market earned 5% over the same period and the risk-free rate was 2%. Given that the Beta over this investment horizon for ABC stock was 0.8 then you would compute the abnormal return for ABC stock over this period to be:
[Please give your answers in percent format to two decimal places. Thus if the correct answer is -3.25256% please write simply -3.25]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
