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olchik [2.2K]
3 years ago
11

Stock Rit Rmt ai Beta

Business
1 answer:
Irina18 [472]3 years ago
6 0

Answer:

1.8 option c

Explanation:

this question has a very simple solution

the following definitions

Rit = return for stock i during period t

Rmt = return for the aggregate market during period t

The abnormal rate of return for stock z is = Rit - Rmt

Rit = 9.8

Rmt = 8

9.8 - 8 =<u> 1.8</u>

<u></u>

<u>therefore the abnormal rte of return for stock z is = 1.8, which is option c</u>

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