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.
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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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