Question: PLEASE ANSWER THE FOLLOWING QUESTION... Considering these data where 'P1' estimates are analyst forecasts of future stock prices..... B 53 64 0.27 1.2 24.75 30

PLEASE ANSWER THE FOLLOWING QUESTION...

PLEASE ANSWER THE FOLLOWING QUESTION... Considering these data where 'P1' estimates are

Considering these data where 'P1' estimates are analyst forecasts of future stock prices..... B 53 64 0.27 1.2 24.75 30 0.28 1.1 C 33.95 41 0.18 1.7 D 40.8 47 0.39 1.2 Stock PO P1 o A B Market Risk Premium 0.04 T-bill rate 0.0575 Assuming the analyst forecast is correct, what is the abnormal return (alpha) relative to the CAPM E(r) for Stock: D? O 0.0404 O 0.0437 O 0.0465 0.0410 O 0.0486 D

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