Which are believed to be stable over time rf 10 11rm if


An index model regression applied to past monthly returns in Ford's stock price produces the following estimates, which are believed to be stable over time: rF = .10% + 1.1rM If the market index subsequently rises by 7.3% and Ford's stock price rises by 7%, what is the abnormal change in Ford's stock price?

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Finance Basics: Which are believed to be stable over time rf 10 11rm if
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