Business, 05.07.2021 20:10 DatBoiCedd

Stock Rit Rmt ai Beta A 10.6 15Â Â Â 0 0.8
Z Â 9.8 8 0 1.1

Rit = return for stock i during period t
Rmt = return for the aggregate market during period t

What is the abnormal rate of return for Stock Z during period t using only the aggregate market return (ignore differential systematic risk)?

a. 3.40
b. 4.40
c. 1.80
d. -4.40

E.
-1.70

Answers: 3

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Stock Rit Rmt ai Beta A 10.6 15Â Â Â 0 0.8
Z Â 9.8 8 0 1.1

Rit = return for sto...

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