Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Analysis of 60 monthly rates of return on United Futon common stock
indicates a beta of 1.54 and an alpha of -0.29% per month. A month
later, the market is up by 5.9%, and United Futon is up by 6.9%. What is
Futon's abnormal rate of return?
Note: 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.
Rate of return
%
K
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Transcribed Image Text:Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.54 and an alpha of -0.29% per month. A month later, the market is up by 5.9%, and United Futon is up by 6.9%. What is Futon's abnormal rate of return? Note: 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. Rate of return % K
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