Question: Problem 1 1 - 1 8 ( Algo ) An index model regression applied to past monthly returns in Ford's stock price produces the following

Problem 11-18(Algo) An index model regression applied to past monthly returns in Ford's stock price produces the following estimates, which are believed to be stable over time: \[ r_{F}=0.10\%+1.1 r_{M}\] Required: If the market index subsequently rises by \(8.3\%\) and Ford's stock price rises by \(8\%\), what is the abnormal change in Ford's stock price? Note: Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. Abnormal return
Problem 1 1 - 1 8 ( Algo ) An index model

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