Analysis of 60 monthly rates of return on united futon


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?

(Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places)

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Financial Management: Analysis of 60 monthly rates of return on united futon
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