Question: During a given period, a stock had a realized return of 12%. During the same period, the risk free rate of return was 6% and

During a given period, a stock had a realized return of 12%. During the same period, the risk free rate of return was 6% and the market return was 9% and this stock's beta was 0.8. Calculate this stock's abnormal return during the period in question. Group of answer choices 3.6% (4.2%) (3.6%) 4.2%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!