Question: Suppose that during a certain week the Fed in the U. S. announces a new monetary growth policy. Congress surprisingly passes legislation restricting imports of
Suppose that during a certain week the Fed in the U. S. announces a new monetary growth policy. Congress surprisingly passes legislation restricting imports of foreign automobiles, and Ford comes out with a new car model that it believes will increase profits substantially. How might you go about measuring the market’s assessment of Ford’s new model?
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Here we need a twofactor model relating Fords return to those of both the broad market and ... View full answer
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