Determining the futon abnormal rate of return


Analysis of 60 monthly rates of return on United Futon common stock indicates a beta of 1.45 and an alpha of _.2 percent per month. Amonth later, the market is up by 5 percent, and United Futon is up by 6 percent. What is Futon"s abnormal rate of return?

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Finance Basics: Determining the futon abnormal rate of return
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