Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.58 and an alpha of -0.33% per month. A month later, the market is up by 6.3%, and United Futon is up by 7.3%. What is Futon's abnormal rate of return? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct.

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Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.58 and an alpha of -0.33% per month. A
month later, the market is up by 6.3%, and United Futon is up by 7.3%. What is Futon's abnormal rate of return? (A negative answer
should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal
places.)
> Answer is complete but not entirely correct.
Rate of return
(2.65) X %
Transcribed Image Text:Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.58 and an alpha of -0.33% per month. A month later, the market is up by 6.3%, and United Futon is up by 7.3%. What is Futon's abnormal rate of return? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) > Answer is complete but not entirely correct. Rate of return (2.65) X %
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