Problem

Here are alphas and betas for Intel and Conagra for the 60 months ending April 2009. Alpha...

Here are alphas and betas for Intel and Conagra for the 60 months ending April 2009. Alpha is expressed as a percent per month.

 

Alpha

Beta

Intel

−.57

1.08

Conagra

−.46

.65

Explain how these estimates would be used to calculate an abnormal return.

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Solutions For Problems in Chapter 13