Question: Based on the information below, calculate the abnormal return and risk-adjusted returns for each stock. Stock Rit Rm(it) Bi ABC 8.70% 5.00% 1.45 DEF 9.25%

Based on the information below, calculate the abnormal return and risk-adjusted returns for each stock. Stock Rit Rm(it) Bi ABC 8.70% 5.00% 1.45 DEF 9.25% 8.15% 1.12 GHI 14.25% 12.25% 1.35 JKL 6.75% 9.00% 0.65 MNO 10.35% 12.25% 0.87 PQR 12.75% 8.25% 1.27 STU 13.05% 10.05% 1.3 VW 7.75% 12.75% 0.72 XYZ 15.57% 13.05% 0.95 Which stock has the best abnormal return? Which stock has the best risk-adjusted return

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