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

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 12.4 % 4.7 %
F 10.3 7.6
T 15.6 7.5
C 12.9 15.8
E 16.6 11.0

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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