Question: need help on this question! ABC stock just earned 5% while the market earned 5% over the same period and the risk-free rate was 2%.
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)
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